The Republic of Turkey, via its Central Bank, has launched an attractive program to urge Turkish people to transfer existing investment funds and gold deposits for lira time deposit accounts.
Aimed at stabilizing the Turkish Lira?
The Central Bank released a short statement at the end of December 2021. It stated that this reward plan is aimed to “promote monetary sustainability”. Currently, Turkey is experiencing a severe financial recession, which has resulted in a dramatic devaluation of its currency and a rise in inflation. The Turkish debt and currency crisis has resulted in almost thirty-six percent inflation at the start of January 2022.
This is the latest attempt to halt the Lira’s downfall in domestic and international markets. The Central Bank stated that it would reward all participation and deposit fund holders who would convert their assets to Lira. They urged citizens to stand by their country in these tough times.
Their statement (dated 29th December 2021) mentioned that some incentives shall be provided. It would be for participation and deposit fund holders if they consent to have their participation and gold assets exchanged into deposit accounts of the Turkish Lira.
Unfortunately, the announcement was silent on how the Central Bank intended to compensate citizens who consent to have their participation or gold assets exchanged for Lira time deposits.
How are Turks investing and why?
Many Turks are seeking refuge in alternate reserve currencies such as digital and gold currencies due to the increasing prices and weakening economy. The number of regular cryptocurrency exchanges in Turkey has surpassed 1 million. This landmark implies that more people are opting for investment alternatives like gold and bitcoin to secure their assets.