Turkey's Central Bank revokes regulation on 'under-mattress' gold

Turkey's Central Bank has decided to abolish a regulation introduced in 2022 that aimed to integrate privately held gold, often referred to as 'under-the-mattress' gold, into the country's financial system. The bank officially announced the revocation of the directive.

The 2022 regulation was designed to incentivize citizens to deposit their physical gold reserves, thereby increasing the liquidity and depth of the financial markets. The move was seen as an effort to channel a significant portion of the nation's wealth, traditionally stored as a hedge against inflation and currency fluctuations, into more productive economic activities.

By removing this regulation, the Central Bank is signaling a shift in its approach to managing gold reserves and financial system liquidity. The exact reasons for the revocation were not detailed in the announcement, leaving market participants to speculate on the implications for gold ownership and financial policies in Turkey.