The depreciation of the Turkish lira over the past 12 years has led to a profound shift in household saving preferences. In Türkiye, it is estimated that around 5,000 tonnes of gold worth approximately $705 billion are kept outside the financial system, commonly referred to as being held under the mattress.
France’s leading business daily Les Echos reports that the depreciation of the Turkish lira has pushed households in Türkiye to channel their savings into gold. The newspaper notes that the lira has lost nearly 95% of its value over the past 12 years.
As confidence in the national currency has eroded, households in Türkiye are estimated to be holding around 5,000 tonnes of gold equivalent to roughly $705 billion at current prices outside the formal financial system. This has created a substantial pool of savings remaining beyond institutional channels.
According to a Bloomberg survey of banks, the pace of depreciation of the Turkish lira is expected to slow to around 13% in 2026. The report also states that by year end, the U.S. dollar has risen to 43 Turkish lira, while the euro has reached 51 lira.
Government aims to bring under the mattress gold into the financial system
The Central Bank of the Republic of Türkiye has kept its policy interest rate at 38% as part of its fight against inflation, applying one of the highest interest rates globally, the report says.
Although annual inflation eased to 31% in November, it remains above the central bank’s official target of 24%.
While the government aims to integrate household gold holdings into the financial system, Les Echos underlines that this goal can only be achieved through lasting price stability.
The report also notes that Türkiye’s total foreign exchange reserves stand at around $200 billion, roughly half of which consists of gold.
