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A diplomatic source, however, familiar with talks of Turkish deputy foreign minister Sedat Onal in Washington this week, told The National that exchanging Mr Brunson for Mr Atilla is not on the table from the USA side.
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Turkey's lira hit a new record low against the USA dollar in early trade on Friday, as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions to the crisis.
The Turkish economy was already mired in crisis amid worsening relations with Washington and worries over soaring inflation and unemployment.
The dollar rose as exposure to Turkey could impact European banks and spark a domino effect as people begin to pull out of those banks and into US assets, said Gregan Anderson, macroeconomic strategist at brokerage Bulltick LLC.
Trump says via tweet that the tariff on aluminium imports will be increased to 20 percent and the tariff on steel imports will be raised to 50 percent as the Turkish Lira "slides rapidly downward against our very strong Dollar!" As recently as April the ratio was about four lira per dollar.
Trump last month threatened to slap "large sanctions" on Turkey if it did not release American pastor Andrew Brunson, who faces charges of espionage for allegedly supporting a failed coup attempt in 2016. Last week, the United States implemented punitive sanctions on two members of the Turkish cabinet and warned of further measures to come.
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Fears over contagion even pushed global equity markets lower, with some European banks coming under heavy selling pressure due to their exposure to Turkey.
Turkish President Tayyip Erdogan has dismissed concerns over the tumbling lira, calling on Turks to "have no worries", after the currency hit record lows in recent weeks on the back of a widening rift with the United States. "This is a national, domestic battle", he told a crowd in the northeastern city of Bayburt, according to Reuters.
"The dollar can not block our path".
While Mr Barkey advised for a one-on-one meeting between Mr Trump and Mr Erdogan to negotiate and de-escalate the situation, Steven Cook of the Council on Foreign Relations did not see a path to end the spat soon.
That is unlikely to mollify investors who are also anxious by a growing dispute with the United States. A looming debt crisis that potentially involves a Turkish request for assistance or a bailout from the International Monetary Fund could have significant European and global economic repercussions. But now, the relationship appears to have gone sideways.
"First of all, confidence needs to be regained". In response, the currency renewed its sell-off.
The lira hit a record low of 6.24 per dollar on Friday, before recovering to 5.96, down more than 7 per cent on the day. Hard currency debt issued by Turkish banks suffered similar falls.