Ankara has accused the USA of moving far too slowly to process the extraction of Gulen to face justice in Turkey for the defeated coup attempt, which left 251 people martyred and almost 2,200 injured.
Korkut Boratav is more concerned and thinks an intervention by the International Monetary Fund is the only way to save the European banks.
Investors fear Turkey is teetering on the edge of financial crisis following a dramatic plunge in its currency that has gathered pace this week.
The report said that the situation is not yet seen as "critical" but Spain's BBVA, Italy's UniCredit and France's BNP Paribas are regarded as particularly exposed.
Turkey's embattled lira on Friday hit new record lows against the U.S. dollar, losing some five percent in value as fears grew over the exposure of European banks and tensions with the United States showed no sign of easing as Washington piled more pressure on Ankara through sanctions after a meeting between a Turkish delegation and USA officials in Washington yielded no apparent solution to a diplomatic rift over the detention in Turkey of an evangelical American pastor.
FILE PHOTO: A money changer counts Turkish lira banknotes at a currency exchange office in Istanbul, Turkey August 2, 2018.
Investors are now awaiting the release of the USA consumer price inflation for July for clues on the interest rate outlook and to gauge if new import tariffs were starting to have an impact. Going in the opposite direction was the safe-haven Japanese yen, which hit a one-month high against the dollar.
The 19-country currency fell 0.7 percent to trade at $1.1450 in morning trading in Europe. The currency has shed 22pc of its value since late July. Overnight it had retreated to its lowest since November 2016 on threats of new US sanctions, weakening beyond the psychologically important 65-per-dollar threshold.
"Other EM currencies have held their ground against the dollar, having generally been weakening previously", said analysts at Capital Economics. "If they have the dollar, we have Allah", he said in a speech early today.
In commodities, USA crude oil CLc1 fell 0.5 percent to $66.51 a barrel, while Brent crude LCOc1 was 0.4 percent lower at $71.77 per barrel.