Turkish citizens prefer to stockpile gold and foreign exchange, ignoring a recent call from President Recep Tayyip Erdogan

President Recep Tayyip Erdogan

According to a recent study, Turkish citizens prefer to stockpile gold and foreign exchange, ignoring the recent call by President Recep Tayyip Erdogan to invest in the lira, Ahval news and analysis portal writes today, March 28.

At the convention of the ruling Justice and Development Party earlier this week, its leader and head of state called on compatriots to sell gold and foreign currency to stem the fall in the Turkish lira.

“I ask my citizens to invest their funds in foreign currency and gold in various financial institutions and use these assets in the (local) economy and production,” Recep Tayyip Erdogan said at the time.
However, Istanbul-based research firm Aksoy Research has found that Turks continue to favor the yellow metal and dollars. Only 11.4 percent of the country’s citizens decided to keep their savings in the Turkish lira. About 39.6% of participants answered that they would invest in gold when asked: “If you had 10,000 lire to spare, where would you invest it?”. Another 18.9% said they would invest in dollars, and 14.3% in cryptocurrency.

Meanwhile, international financial institutions such as Societe Generale SA, Commerzbank AG, and Rabobank expect that the Turkish national currency will fall by about 20 percent against the US dollar by the end of the second quarter of this year, close to the level above 9.7 lire for $ 1, according to Bloomberg.

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As TOPNEWS reported, Yigit Bulut, senior economic adviser to the Turkish president, said on March 23 that over the previous day, the country’s citizens had exchanged more than $ 7 billion for lira. Thus, the Turkish official tried to dispel rumors that after another sharp decline in the national currency, the country’s residents rushed to exchange lira for dollars. Talk of the so-called dollarization of the Turkish economy is a lie, Bulut told local news channel, A Haber.

Erdogan’s adviser issued calming statements to Turkish citizens after the lira showed significant weakening against the US dollar last Monday. Investors began to sell the Turkish national currency following Erdogan’s decision to fire the head of the Central Bank, Naji Agbal, which is believed to have been associated with a sharp increase in the base discount rate.