Central Bank of Türkiye ends gold-to-TL conversion incentives

The Central Bank of the Republic of Türkiye (TCMB) has officially repealed the regulation regarding the inclusion of physical gold into the financial system. This measure, which had been in effect since March 14, 2022, was designed to encourage citizens to convert their physical gold holdings into Turkish Lira (TL) deposit or participation accounts.

Under the previous regulation, individuals and legal entities could deposit physical gold through authorized jewelers, refineries, or bank branches. In exchange for converting these assets into TL accounts with fixed terms (3, 6, or 12 months), the Central Bank provided additional returns, premiums, or interest support to offset potential gold price increases.

With the repeal published in the Official Gazette, these additional financial incentives and state supports for gold-to-TL conversions have ended. However, the Central Bank noted that existing accounts opened under the previous rules will be protected. Holders of such accounts will continue to receive their interest, profit shares, or additional returns according to their original contract terms until the maturity of their accounts.