Turkish Central Bank Urges Conversion of Gold Deposits to Lira Time Deposits

SEATTLE (Scrap Monster): The Central Bank of the Republic of Turkey (CBRT) has launched a new incentive scheme, encouraging residents to convert their gold deposits into Lira time deposit accounts. The move is regarded as a desperate attempt by it to halt the lira’s ongoing decline.

In a press release dated 21^st December, 2021, the Turkish central bank announced that deposit and participation fund holders would be provided with incentive in the event that they converted their FX deposit accounts and participation funds into TL time deposit accounts. The decision is aimed at ensuring financial stability by boosting the share of Turkish lira in total deposits and participation funds in the banking system. Incidentally, the Turkish currency has recorded sharp depreciation in value, following the deep economic crisis in the country.

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The residents have been taking refuge in alternative assets such as gold and bitcoin in order to protect their savings. The bitcoin trades had recently surged past the milestone of 1 million, underlining the popularity of digital currencies in the country.

Meantime, the CBRT is yet to publish the details of how it is planning to reward residents that have agreed to convert their gold or participation funds converted into lira.