Turkish Residents Loses Faith In Their Local Fiat Currency, Lira Falls 20% This Year
Turkish Residents Loses Faith In Their Local Fiat Currency, Lira Falls 20% This Year
August 20, 2020
Turkish Residents Loses Faith In Their Local Fiat Currency, Lira Falls 20% This Year
Turkish Residents Loses Faith In Their Local Fiat Currency, Lira Falls 20% This Year
August 20, 2020

Turkish residents are losing faith in their local fiat currency, with confidence in the lira falling 20% this year, as they are dumping lira, converting it to dollars, and buying gold. 

It has been reported by Reuters that 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.  

However, inflation is currently at 11.8% and has overtaken the amount of interest offered for savings at banks.

One resident said that he had bought gold as a safe-haven asset by saying:

“I think it is the best investment right now so I converted my dollars to buy gold, I might withdraw my lira and buy gold with it too, but I am scared to go to the bank right now because of coronavirus.” 

Likewise, locals expect more panic-selling of the lira if the government cannot boost confidence in the currency, which has dropped by almost 20% in 2020.

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According to the report, Turkey’s economy depends mostly on imports. The pandemic has worsened inflation and it may also cause a balance of payments crisis, further weakening the currency.

Although fiat currency like lira continued to lose value due to massive inflation, Bitcoin’s market cap has reportedly become greater than Bank of America and the New Zealand dollar.

Source: Cointelegraph | Image: Arab News


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
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