In an effort to combat the financial repercussions of last week’s earthquakes in Türkiye southeastern region, the Treasury and Finance Ministry has finalized a regulation that will pause gold imports from abroad falling under “cash against goods.” This decision has yet to be made public, though it is already being put into action. When asked for comment on this matter, the ministry declined to do so.
Türkiye Was One of the Biggest Gold Buyers
Before the devastating earthquakes that rocked Türkiye in early 2022, gold imports had already become one of the most noticeable downfalls of their external finances. As Turks sought to use it as a safeguard against rampant inflation and plummeting lira rates, they drove up the country’s current account deficit – now standing at an all-time high of $48.8 billion – by almost half ($20.4 billion) due to such hefty investments in precious metal alone.
Last year, Türkiye stood out as the top purchaser of gold among central banks. Based on data provided by World Gold Council last month, its reserves had skyrocketed to an unprecedented 542 tons – a leap of 148 tons!
The Earthquake Went Down in History as the Most Destructive Earthquake in the History of That country
Last week, a devastating 7.9 magnitude earthquake struck central Türkiye and northwest Syria with immense force — leaving tens of thousands dead in its wake as buildings crumbled amidst the snow-covered landscape. Emergency responders quickly began searching for survivors feared to be buried beneath rubble while people scrambled to flee the region. Sadly, this tragedy is estimated by Ankara’s business group to have inflicted up to $84 billion worth of damage upon Türkiye, whereas a government official put that number at more than $50 billion — making it one of the most expensive earthquakes in Turkish history!
A report recently released by the Turkish Enterprise and Business Confederation indicated that the overall financial impact of recent damages reached an enormous total of $84.1 billion, broken down into $70.8 billion for repairing thousands of homes, $10.4 billion in lost national income, and a further loss of working days estimated at around $2.9 billion.
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