Rampant inflation is affecting Turkish residents’ confidence in the nation’s lira fiat currency. According to a Reuters report on Aug. 14, locals are dumping lira, converting it to dollars and buying gold.
Even with market interventions and reassuring stories about monetary stability coming from the government, the locals’ faith in the lira is on a downward 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 had bought gold as a safe-haven asset:
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