Rampant inflation is negatively affecting the confidence of Turkish residents in the paper lira. According to Reuters, local residentsThey get rid of lyres, convert them into dollars or buy gold.
Even taking into account market investments andHopeful statements about the monetary stability coming from the government, the faith of local people in the lyre is following the downward trajectory. At present, inflation is 11.8% and has exceeded the size of the percentages, which are expected for depots in the bank.
In connection with this, one resident said that he invested his money in gold as an asset-refuge:
“I think this is the best investment now, so I exchanged my dollars for gold. I could take off my lyre and buy gold with them, but I'm afraid to go to the bank because of corona virus. "
If the government is unable to strengthen the currency, which fell by 20% only in 2020, the fearful sentiments among the inhabitants will rise.
The predominantly economy of Turkey depends on imports, the pandemic has aggravated the situation and can cause a drop in the balance of payments, making the currency even more rewarding.
It's no wonder that cryptocurrencies are getting moredistribution in Turkey. A total survey of the local stock exchange BtcTurk, held together with the Statistical Center of the Istanbul University, in June during the period of the COVID battle of 58% was doubled. It is common practice that since February 2019, the use of BTC by Turkish auditors has doubled.
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