https://ahvalnews.com-Turkey’s Treasury and Finance Minister Nureddin Nebati on Saturday announced a new economic package aimed at getting households to include gold savings into the financial system, Duvar news site reported.
As of next month, citizens will be easily and safely deliver their “under-the-mattress” gold savings to the financial system by way of banks and jewellery stores, Nebati said at the Istanbul Congress Centre, noting that a six- month non-refundable support period would be extended to investors.
The package arrives as Turkey struggles with a high inflation, which surged to a two-decade high of 48.7 percent in January, according to official data. The lira’s plunge last year wiped out the purchasing power and savings of common Turks, following multiple interest rate cuts by the central bank, as part of President Recep Tayyip Erdoğan’s unorthodox policy of keeping borrowing costs low.
The lira lost 44 percent of its value against the U.S. dollar last year, falling as low as 18 lira to $1 in December in a record-breaking low.
“The main strategy in the fight against inflation will be to reduce the exchange rate pass-through for inflation by reducing the negative effects of short-term capital movements,” Duvar cited Nebati as saying.
The finance minister also said that three new support packages would be introduced, including an investment support package, export support package, and business expenditures support package.
“We will urge production and points of sales to contribute to price reductions on a voluntary basis and we are establishing an anti-inflation team,” he said.
Earlier on Saturday, President Erdoğan spoke at the Turkish Economy Model and Inflation Measures Meeting, where he announced a reduction in value-added tax rate of staple food products, Duvar reported.
“As part of the VAT system simplification program, we are reducing value-added tax rate of staple food products from 8 percent to 1 percent,” Erdoğan said.
The Turkish president requested businessmen to reduce prices in accordance with the new VAT reduction.
Erdoğan also vowed to reimpose tighter controls and fines on those carrying out steep price hikes.