The Turkish lira declined sharply against the U.S. dollar on Wednesday to a new low, raising concerns about the country's economic outlook.

The lira stood at 4.84 against the greenback at 11 a.m. (0900 GMT), after dipping to an all-time low of 4.92 earlier in the morning, marking a loss of over 20 percent since this year.

"Turkey's economic outlook could worsen rapidly if the Central Bank fails to stem pressure on the currency by hiking the interest rates," Nilufer Sezgin, the chief economist with Is Asset Management, told Xinhua.

In her view, the volatility in exchange rates has reached a point to disturb the real economy, affecting companies' profits and assets negatively.

"Several companies have already begun to observe some difficulties," she said, expecting more problems in the near future unless the authorities take the necessary precautions.

The Central Bank's intervention is now very limited compared to what it did over the past years, said Sezgin.

Murat Salar, general manager of Azimut Portfoy, an asset management company, urged the Central Bank to respond urgently as "there is a speculative attack on Turkish lira."

In his view, the rapid increase in exchange rates cannot be tied to basic economic motives but rather to misperceptions, which "should be urgently fixed."

"But the delays have put additional pressure on the currency, pushing the exchange rates to higher levels," he said.

In April, the Central Bank increased the interest rates by 75 basis points and is expected to have its next routine meeting at the beginning of June.

According to Sezgin, there will be an interest rates increase "for sure," but not aggressive enough to be able to boost the Turkish currency to the initial levels.

"For that, there should be additional hikes of interest rates in due course," she said.

Concerns among the citizens are also high.

Turks have been raising their voices on social media under the theme of "who is going to stop it?"

"One dollar was 4.59 Turkish lira yesterday morning. It became 4.67 in the evening. We woke up in the morning and it was 4.80," tweeted Gonenc Gurkaynak.

Burak Kadercan tweeted that the Turkish currency has lost 20 percent of its value against the dollar, "triggering slow-motion panic."

According to local media reports, several exchange bureaus in Istanbul have stopped buying and selling foreign currencies due to high fluctuations, while Borsa Istanbul, Turkey's main stock exchange, has converted all of its cash assets into Turkish lira in a show of confidence in the country's economy.

Turkey is scheduled to hold snap presidential and parliamentary elections on June 24, a development that will add extra stress to the uncertainties facing the economy, according to economists.