{"id":34682,"date":"2018-06-03T07:23:43","date_gmt":"2018-06-03T12:23:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34682"},"modified":"2018-06-03T07:23:43","modified_gmt":"2018-06-03T12:23:43","slug":"good-as-gold-turkey-uses-bullion-to-stabilise-its-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34682","title":{"rendered":"Good as gold: Turkey uses bullion to stabilise its economy"},"content":{"rendered":"
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Good as gold: Turkey uses bullion to stabilise its economy<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
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Commercial banks are putting gold into Turkey’s central bank to help deal with rapid inflation<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Turkey\u2019s central bank has accumulated an additional 400 metric tonnes of gold since 2011 (Reuters)<\/div>\n
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Turkey\u2019s economy has been in a tailspin with an inflationary currency, but the country is using something rare to help stabilise itself: gold.<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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In late 2011, Turkey started to allow commercial banks to use gold instead of the Turkish lira for their required deposits at the central bank. These deposits are known as reserve requirements and help ensure that the banks are capitalised.<\/p>\n

Over the past six-or-so years, Turkey\u2019s central bank has accumulated an additional 400 metric tonnes of gold. That\u2019s a lot of yellow bricks \u2013 more than what Britain has – and the sizeable stash has the possibility to take the edge off the crisis.<\/p>\n

To put the Turkish gold haul in perspective, there are 10 million ounces of gold \u2013 roughly 311 tonnes – at the Bank of England, according to the New York-based financial consulting firm CPM Group.<\/p>\n

The burgeoning balance of bullion comes as the result of a change in banking rules made earlier this decade.<\/p>\n

I thought the Turkish thing was pure genius<\/p>\n

– Jeff Christian, CPM Group<\/em><\/p><\/blockquote>\n

\u201cI thought the Turkish thing was pure genius,\u201d says Jeff Christian, founder of CPM Group. \u201cIt was using gold in the way that you should use it.\u201d<\/p>\n

In the simplest terms, the tweak to the rules allows gold to be used as a financial asset by the banks. In addition, the new regulation helped flush out a lot of gold that was previously held privately.<\/p>\n

\u201cThis change allowed the government to get hold of the under-the-mattress gold to help stabilise the banks and the underlying economy,\u201d says Ivo Pezzuto, professor of global economics, entrepreneurship, and disruptive innovation at the International School of Management, Paris, France.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Good as gold: Turkey uses bullion to stabilise its economy Commercial banks are putting gold into Turkey’s central bank to help deal with rapid inflation Turkey\u2019s central bank has accumulated an additional 400 metric tonnes of gold since 2011 (Reuters) Turkey\u2019s economy has been in a tailspin with an inflationary currency, but the country is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,3563,122,951,20305,374,426,6741,20304,818,8280],"class_list":["post-34682","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-bullion","tag-central-bank","tag-currency","tag-currency-stablisation","tag-gold","tag-inflation","tag-middle-east-eye","tag-simon-constable","tag-turkey","tag-turkish-lira"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34682"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34682\/revisions"}],"predecessor-version":[{"id":34683,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34682\/revisions\/34683"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}