The Central Bank of the Republic of Turkey recently disclosed that it has decided to provide incentives to holders of gold deposits and participation funds who request to convert these into lira time deposits, a statement from the central bank said.
Incentives aimed at promoting financial stability
The Central Bank of the Republic of Turkey (CBRT) has announced the launch of an incentive scheme that encourages residents of Turkey to convert their gold deposits and participating funds into lira time deposit accounts.
In a brief statement issued at the end of December 2021, the central bank explained that the stimulus scheme is aimed at “supporting financial stability.” As widely reported, Turkey is in the midst of a deepening economic crisis that has led to a sharp depreciation of the lira and a rise in prices.
In turn, this combination of a falling currency and rising inflation rates has seen more Turkish residents seek refuge in alternative stores of value such as gold and digital currencies. As recently reported by Bitcoin.com News, the number of daily cryptocurrency trades in that country recently exceeded the one million mark. This milestone suggests that more Turkish residents are choosing to protect their savings with alternatives such as bitcoin and gold.
conversion to lira time deposit
Therefore, as part of the Turkish government’s latest effort to halt the decline of the lira, the central bank explained in the statement that “deposit and participation fund holders” who choose to convert their funds to the lira will receive incentives.
“The Central Bank of the Republic of Turkey has decided to provide [an] Incentives for deposit and participation fund holders in the event that their gold deposits and participation funds are converted into Turkish lira time deposit accounts, read a statement issued by the central bank on 29 December.
The statement, however, did not share details of how the CBRT plans to reward residents who agree to convert their gold or participating funds.
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