Turkish economy re-gains 45 tons of gold ‘under mattresses’ through campaigns

ANKARA - Anadolu Agency

DHA Photo

A total of 45 tons of gold worth $1.7 billion have re-entered the Turkish economy through a number of gold collection campaigns, said Istanbul Gold Refinery’s Alternative Sale Channels-Gold Banking Director, Enver Yaşar. 

The gold collection campaign started in 2010 with the attendance of one bank. There are now 11 banks in the system. 

Yaşar said around 5,000 tons of gold have been “under mattresses” in Turkey, as many people see it a safe way of saving. With the new campaigns, some 45 tons of it have entered the economy again, according to Yaşar. 

“Thus, a total of $1.7 billion of savings have come online in the official economy,” Yaşar said. 

He noted that the expected monetary value of the 5,000 tons of gold is around $200 billion. 

“The inclusion of such big amount of money into the formal savings system will enable the total savings of the country to increase from 13 percent of the GDP to around 20 percent,” he noted. 

The Central Bank has started to accept gold as the required reserve ration on the Turkish Lira, a first in the world, said Yaşar. 

Gold banking will be more attractive for Turkish people if the interest rates and yields are increased in this sector and gold transfer becomes possible between banks, making the gold more liquefied, according to Yaşar. 

“Through such measures, the sector will soar in the future,” he said. 

Yaşar noted that gold banking’s volume was just around 34 tons in 2010, with this figure gas increasing to 108 tons as of May 2015.