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Despite Turkish President Recep Tayyip Erdogan’s promise last month to carry out judicial and economic reforms, Turks agree to buy gold instead of leaving their money in their bank accounts or at home, as the local currency continues to fall. decline against foreign currencies, according to economists and parliamentarians. Former workers at a Western research center.
With the Turkish lira continuing to lose value against foreign currencies, Turks find no safe way to preserve the value of their savings except by purchasing large amounts of gold, which people usually resort to in times of crisis. turbulence, to ensure that their money is protected from the consequences of economic crises.
Turkish academic and economist Jan Kaki Chem said: “There is popular discontent and desperation in Turkey about the future of the economy due to the continued loss of the value of the lira against currencies. foreign, and for this reason people think it illogical to keep it, and therefore they buy gold as an alternative to the local currency after They have been affected by its recent decline. “
He added to Al-Arabiya.net that “buying gold is a traditional way for Turks to keep their savings, especially since some of them think that the value of the dollar and the euro is high compared to the lire, so they tend to buy gold as the best and only option.
He continued, “It seems clear that the government is unable to overcome the current economic crisis. On the one hand, it cannot attract foreign capital and, on the other hand, it has problematic relations with all its neighbors and former trade allies, which means that there is insufficient investment in the country, which is reflected. ” Negatively the local currency and the Turkish economy in general.
Berat Al-Bairaq
He also pointed out that “recent resignations, such as that presented by Berat Albayrak, the president’s son-in-law from his post as finance minister, have slightly improved the exchange rate of the lira, but this was a temporary affair and were an opportunity for people to buy foreign currency, “noting that” the Turkish economy will not see any improvement. The coming period, especially as it coincides with the problems of democracy, law and freedoms in the country. “
And this week, researchers and financial experts from the Washington-based Foundation for the Defense of Democracies predicted further deterioration in the Turkish economy in the new year. This is one of the reasons people buy gold instead of keeping their savings in Turkish Lira.
Today, the Turkish Lira was registered at 7.37 against the US dollar. It also recorded 9.015 against the euro, having lost around 30% of its value against foreign currencies in the year 2020.
A new opinion poll conducted by the Turkish branch of the Dutch bank showed that out of 4 Turkish citizens, one person keeps gold at home as their only savings option. The reason is Ankara’s financial policy, as citizens’ confidence in local banks has declined.
Erdogan had asked his citizens in mid-December to convert their savings into Turkish lira. This is something the Turkish president repeats with every financial crisis his country goes through.
Last November, Turkey’s central bank raised the main interest rate by 475 basis points to 15% to contain a record decline in the lira and inflation of more than 10%.
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