Turkish People are Buying Gold to Save Their Money Against Dollar Even Selling Their Houses!

Turkish People are Buying Gold to Save Their Money Against Dollar Even Selling Their Houses!

Hasan Ayhan, a 57-year-old Turkish Says, “I think it is the best investment right now so I converted my dollars to buy gold. I might withdraw my lira and buy gold with it too, but I am scared to go to the bank right now because of coronavirus.”

Turks are rushing to gold purchase by selling the foreign currencies. Even some are selling their houses and cars to buy gold now.

This emerging gold rush can be seen there because of the decline Economy of them which was mainly accelerated by the Army coup.

The Turkish lira has dropped down alarmingly. The lira hovered around 7.3 against the dollar this week and in this year market is in its worst condition.

This happened because of the corruption and nepotism prevailed there.

Besides unemployment problems that hovered 25% also played a role here.

Though now their President Recep Tayyip Erdoğan successfully able to divert people’s attention to Greece Crisis by creating the agenda.

Because of this situation Turkish citizens always try to keep their assets in the form of gold or U.S Dollars instead of the Turkish lira.

Previously Turks used to keep their gold under mattresses. Even 5,000 tonnes of gold could be found under their mattresses in some cases.

According to Shamaila Khan, New York-based head of EM debt strategy at AllianceBernstein, “Locals don’t want to keep Turkish lira, they’ve been dollarizing and buying gold. Turks have hardly ever done that historically.”

So, she suggests that the government should take a step in this situation with policies. She fears if locals are unwilling to keep their money to the bank then the country is going to face a payment crisis.

Among the common people, at present, there are no gold sellers but buyers. As a result, bullion’s price is so high.

The central bank and the Treasury of Turkey have not commented yet untill the report is published.

Analysts say the currency has already fallen by 20% this year. Foreign investors now belong only to a small amount of Turkish assets. President Tayyip Erdogan’s government is continuously pursuing small business to stop turning to this present stability of gold.

Source: reuters

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