Turkey has become the focal point for concerns about emerging markets in recent weeks, after the U.S. Federal Reserve started reducing the rate of its asset purchases – a process known as tapering.
Last week, the Turkish central bank raised its overnight lending rate to 12 percent from 7.75 percent and the overnight borrowing rate to 8 percent from 3.5 percent. This only succeeded temporarily in halting the lira's fall.
(Read more: Turkey delivers massive rate hike to defend lira)
"There were some unjustified concerns about the unorthodox policy," Simsek said.
Economists are concerned about the country's large current account deficit, and its falling economic growth rate. Official forecasts for 4 percent expansion of the economy in 2014 are increasingly questioned by economists.
"The question mark really is over events over the last 12 months," Neil Shearing, chief emerging markets economist at Capital Economics, told CNBC. He warned that the country could slip into recession this year.
"We have to live with more moderate growth. We are realistic in policy matters. The most important thing is the central bank's capability and its independence," Simsek said.
(Read more: Why an emerging markets panic may be justified)
Simsek also set out his stall for investment in Turkey. He said: "Investors are welcome and they know it."
- By CNBC's Catherine Boyle. Twitter: