Rampant inflation is affecting Turkish residents’ confidence in the lira fiat currency. According to a Reuters report on August 14, locals are dumping lira and converting it to dollars and buying gold.
Even with market interventions and reassuring stories about monetary stability coming from the government, local’s faith in the lira is on a downwards trajectory. Inflation is currently at 11.8% and has overtaken the amount of interest offered for savings at banks. One resident was quoted as saying he bought gold as a safe haven asset:
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