TCMB President Karahan: Price Stability Created a Transformational Effect on Under-the-Pillow Gold.

The President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, answered questions from members of Parliament during the Budget and Planning Committee meeting. Here, he clarified claims that "gold hidden under mattresses weakens the fight against inflation."

Karahan stated that a recent speech he gave has been misunderstood and misrepresented out of context on social media. He emphasized that ensuring price stability is the most important factor in reducing the demand for gold hidden under mattresses. He expressed that this situation would play a critical role in the fight against inflation.

Karahan mentioned that the accumulation of gold under mattresses negatively impacts the cyclical structure of the economy, disrupting the stability of the markets. He noted that this is primarily due to most citizens preferring to invest and save in gold hidden at home.

The President stated that if successful measures against inflation are implemented, the demand for gold hidden under mattresses would naturally decrease. He pointed out that while the nominal value of these gold reserves increases, they do not contribute to the market economy, and overcoming this issue would only be possible through price stability.

He forecasted that after achieving price stability, citizens would be more inclined to keep their savings in banks. This situation would contribute to a healthier banking system and expand credit opportunities.

Additionally, Karahan highlighted that the public should seek more effective financial products to protect themselves against inflation. This emerges as the most sustainable solution for both individual investors and the national economy. He emphasized that the steps to be taken in the fight against inflation would play a crucial role in the success of these policies.