Where do billions coming out of foreign currency accounts go?
Economists note that the money in foreign exchange accounts is heading ‘under the pillow’ due to the government’s policies. Speaking to media, a former bank manager said that the shift from foreign currency accounts to ‘under the pillow’ was due to the pressure of the Central Bank. He said that there were no safe deposit boxes left in banks due to demand.
Another economist pointed out that even the sending of small money abroad, was seriously questioned under the instructions of the government adding ”It seems that this situation has caused people to go under pillow, buy property abroad or take money abroad in different ways.” Referring to the developments in the stock market, he said, ”This year will be the year of volatility. The declines will be hard and the rises will be hard.”
Is the 27.7 billion in foreign currency accounts ‘under the pillow’?
According to the data announced yesterday, in the week of December 30, domestic residents’ foreign currency deposits -when adjusted for parity – fell by 3.1 billion. Thus, $ 27.7 billion came out of foreign currency deposits in the last two months. In the same period, currency-protected deposits fell by TL 47.9 billion.
After this situation, economists are asking where such a large amount of money is going in an environment where the stock market is also falling from a record high with a volatile course.
THE MONEY WENT UNDER THE PILLOW
A prominent expert in economy wrote in an article that a significant portion of 27.7 billion dollars had gone ‘under the pillow’ adding “ apportion of this money was used for external debt payment, another part went abroad as well – even if not for debt paynents, some shifted to TL deposit accounts because exchange rate did not move upwards recently. Some bough gold, some went to the stock market, and some preferred investment in real estate. And surely a significant part of this money goes under the pillow.
abroad for a part, if not; maybe the setup because it has happened recently in TL deposits, was in the gold fields, they became attracted to the stock market, the more money those properties should be preferred. Of course, we can’t know exactly their weight, but all of this has happened, it’s happening. But there is another possibility; a significant part of this money also goes under the pillow, to safes.’Indication of distrust in the system’
INDICATION OF DISTRUST IN THE SYSTEM
It is stated that the demand for bank vaults has increased a lot recently. This is a very typical indicator of distrust in the system. Keeping the foreign currency in the bank’s safe instead of keeping it in the bank account is an important preference change and reveals the insecurity of the citizen. One step beyond that would be to move from bank vaults to completely under the pillow.”
SOURCE: diken.com.tr/doviz-hesaplarindan-cikan-milyarlar-nereye-gidiyor/
Translated by BTT
