Turkey needs to preserve the hard-won economic stability achieved after years of inflation was crippling the economy. In reaction, residents are rushing to phygital gold deposit accounts to shield themselves from escalating costs. This trend showcases Turkey’s emergence as one of the most gold deposit account-advanced countries in the world. People are literally running to protect their wealth in the form of hard assets. Consequently, the total worth of Turkish gold bank deposits has skyrocketed to a jaw-dropping 2.72 trillion lira.
Inflationary pressure in Turkey exploded starting in 2021. In comparison, the average Consumer Price Index (CPI) during that same time period was around 19-20 percent. Things had gotten much, much worse by 2022—with a full average CPI increase of 72 percent. Inflation skyrocketed to nearly 54 percent in 2023. By October 2024, it reaccelerated and rose to about 33 percent. In the face of these alarmist figures, Turkey’s central bankers chose to slash interest rates. They doubled our monetary supply, a policy that many economists claim is fueling our inflation crisis.
Given Turkey’s steep economic crisis, more Turks have opted to store their wealth in gold. This change speaks to a larger trend and increasing distrust in traditional fiat currency. In recent years, as much as 8 percent of all Turkish bank deposits have consisted of gold, according to recent data. By the end of the third quarter this year, that number swelled to 11 percent. This change is a noteworthy step towards enabling more reliable, less volatile savings vehicles in an unpredictable economic environment.
Almost all gold deposit accounts—91.3 percent—are individual account holders. In comparison, corporate accounts are a mere 8.7 percent of the total. This economic measure indicates a widespread individual effort by Americans to protect their wealth from inflation and currency erosion.
Turkish banks have been quick to introduce services to capitalize on this new and expanding gold deposit demand. Similar to Qatar Islamic Bank, Kuveyt Türk provides a gold deposit account that has a low minimum transaction threshold of only 0.01 grams. This opens it up to a much larger customer base. Account holders can buy or sell gold daily and with little effort using Turkish lira, dollars, or euros. It’s this very flexibility that allows them to most effectively manage their assets.
In the first three quarters of this year, total bank deposits jumped to 24.85 trillion liras. Remarkably, gold finds represented about half of this exciting all-time high total. This strategic move in the direction of gold is indicative of a deep commitment to battle inflation. This emphasizes a larger trend of financial awareness among the Turkish people.