Turkey Urges Citizens to Deposit Gold Held at Home
The Turkish government is encouraging citizens to deposit an estimated $640 billion in gold and foreign currency currently kept outside the banking system. This practice, known as "gold under the mattress," is seen as detrimental to Turkey's economic stability.
Sources
Turkish Finance Minister Mehmet Şimşek reported that around $640 billion in gold and foreign currency is held outside Turkey's financial system, a practice known as "yastık altı altın" or "gold under the mattress." This cultural habit of hoarding gold as a hedge against inflation is seen as undermining the country's financial stability and future economic growth. Despite government concerns, many Turks view this tradition as a rational response to enduring financial instability, high inflation, and a lack of trust in the national currency, the lira.
Turks commonly keep gold as a hedge against inflation, with billions of dollars worth held in households outside the banking system. The Turkish government is encouraging citizens to deposit this gold into mainstream financial institutions to bolster the economy. This reliance on gold could negatively impact Turkey's financial future if not addressed.