Turkey unveils plan to integrate domestic gold savings into banking system


Citizens will earn risk-free income with gold conversion deposit account, says finance minister

Turkey on Saturday announced a new program to encourage people to bring their gold “under the mattress” into the banking system.

The term refers to a long-standing tradition in Turkey of turning to gold to protect wealth and store it at home.

The Turkish government estimates that around 5,000 tonnes of gold saved at home is worth $250-350 billion.

Addressing the meeting to publicize the new scheme in Istanbul, Treasury and Finance Minister Nureddin Nebati said that 10,000 jewelers would have joined the gold delivery points by the end of this year.

With the gold conversion deposit account, citizens will realize risk-free income, he added.

“Citizens can easily and securely deliver their gold holdings to the financial system through jewelers and banks,” Nebati said.

Gold brought into the financial system under the new plan can be physically taken back on demand, he also said.

Turkish President Recep Tayyip Erdogan has previously called on citizens to convert their gold holdings into Turkish liras through new financial instruments introduced to bolster the currency.

He said businesses and citizens would accelerate the return to the Turkish lira from the start of 2022.


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