The cabinet was unveiled after Erdogan took the oath of office for a second term as president with enhanced powers granted in last year's narrowly-won referendum.
According to the amendments to the Turkish Constitution, the country abolished the position of Prime Minister, and the government will now be headed by a President.
The president has promised to lift the emergency conditions later this month but in the hours before his swearing in he used to issue two more edicts.
"The pace at which he (Erdogan) is moving to tighten his grip is alarming and, in response, Turkish financial assets have come under pressure", said Jason Tuvey, senior emerging markets economist at Capital Economics, in a note to clients.
Under the new system, the president forms government, appoints ministers, vice presidents and high-level bureaucrats.
Turkish President Tayyip Erdogan said that volatility in the dollar would decrease and that, when it comes to exchange and interest rates, domestic banks would lend support, local broadcasters quoted him as saying on Wednesday.
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Mrs Merkel told reporters: "I am very happy that today we are united in freedom as the Federal Republic of Germany". Funding has averaged at about $1 billion annually and Stoltenberg has said he expected that level to be met.
Opponents say the move marks a lurch to authoritarianism, accusing Erdogan of eroding the secular institutions set up by modern Turkey's founder, Mustafa Kemal Ataturk, and driving it further from Western values of democracy and free speech.
"Most importantly, there is increasing evidence that the central bank's independence may already be compromised on Erdogan's (likely to be successful) attempts to extend full control over it".
The Supreme Electoral Council confirmed Erdogan's victory in the June 24 presidential race, declaring that he won 52.59 percent of the votes.
Current Foreign Minister Mevlut Cavusoglu could in theory continue in his job but reports have said Erdogan may choose his spokesman, Ibrahim Kalin, or even spy chief Hakan Fidan to succeed him.
Parliament can ratify or reject his budget and the president needs parliamentary approval for emergency rule and decrees passed during that time. The role of prime minister has also been eliminated, and the president will now be able to pick his own Cabinet.
The inauguration ceremony, which was held in Presidential Compound yesterday evening, was attended by a number of heads of states and government, representatives of heads of states, ministers, heads of parliaments of some countries and representatives of worldwide organizations. Investors are keen to see Mehmet Simsek, now deputy prime minister, continue at the helm of the economy.
A special one lira coin (less than 25 U.S. cents) was minted for guests with the image of the presidential palace, dated July 9, 2018.