Turkey: Central Bank announces “incentives” for Turks to leave gold for pounds…

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The Turkish Central Bank announced on Wednesday that it will provide “incentives” to encourage citizens to switch from gold deposits to pound deposits, even though the pound is constantly losing its value …

The move is part of ongoing efforts to support the Turkish currency. The bank said in a statement that it had decided to “provide incentives to holders of deposit and equity funds in the event that they convert their gold deposits and equity funds into time deposit accounts in Turkish lira”.

It is noted that on Wednesday one dollar was over 12 pounds, while the euro was close to 14 pounds.

The Turkish government has recently introduced a new mechanism to compensate those who have deposits in pounds from foreign exchange fluctuations. The new financial instruments will be available to individuals with three-, six-, nine- or 12-month pound deposits. Under the facility, if yields remain below the exchange rate, the government is committed to paying the difference between the value of the savings in pounds and the equivalent of dollar deposits.

According to analysts, the total amount of gold deposits today stands at 270 billion pounds ($ 22.4 billion), while the amount for three-month time accounts is about 15 billion pounds ($ 1.2 billion).

anadolu.com

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