Turkey Encourages the Conversion of Gold Deposits Into Lira Time Deposits

Key Takeaways:

  • Central Bank of the Republic of Turkey (CBRT) recently announced that it has decided to provide incentives to gold deposits and participation fund holders who request to convert their holdings into lira time deposits.
  • In a brief statement released in late December 2021, the central bank explained that this incentive scheme is intended “to support financial stability.” 
Turkey Encourages The Conversion Of Gold Deposits Into Lira Time Deposits
Turkey Encourages the Conversion of Gold Deposits Into Lira Time Deposits

According to the central bank statement, the Central Bank of the Republic of Turkey (CBRT) recently announced that it has decided to provide incentives to gold deposit and participation fund holders who request to convert their holdings into lira time deposits.

In a brief statement released in late December 2021, the central bank explained that this incentive scheme is intended “to support financial stability.” Turkey is in the midst of a deep economic crisis that has led to the sharp depreciation of the lira and the rising of prices. As a result of the combination of a falling currency and a rising rate of inflation, more Turkish residents have sought refuge in alternative stores of value such as gold and digital currencies. 

The number of daily cryptocurrency trades has recently surpassed one million in Turkey. This milestone indicates that an increasing number of Turkish residents are choosing to protect their savings with alternatives such as bitcoin and gold.

Hence, as part of the Turkish government’s latest attempt to halt the lira’s decline, the central bank stated in a statement that “deposit and participation fund holders” who choose to convert their funds into lira will be rewarded. The statement, however, does not go into detail about how the CBRT intends to compensate residents who agree to have their gold or participation funds converted.

The statement released by the central bank said that “The Central Bank of the Republic of Turkey has decided to provide [an] incentive to deposit and participation fund holders in the event that their gold deposits and participation funds are converted into Turkish lira time deposit accounts at the account holder’s request,” 

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Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.