Central Bank decision affecting gold owners! 4-year-old practice abolished
The regulation encouraging the inclusion of physical gold kept under the mattress into the financial system has ended. With the decision of the CBRT published in the Official Gazette, the practice was repealed, while it was stated that previously opened term accounts would continue under existing conditions until their maturity date.
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The Central Bank of the Republic of Turkey (CBRT) has ended the practice aimed at bringing physical gold into the financial system. The "Communiqué on the Repeal of the Communiqué on Bringing Physical Assets in Gold into the Financial System (No: 2022/11)" has been published in the Official Gazette and entered into force.
PRACTICE FOR GOLD CONVERSION ABOLISHED
With the new decision, the regulation that allowed domestic resident individuals and legal entities to transfer their physical gold to the banking system through certain channels and convert it into Turkish lira deposit or participation accounts has ended.
Furthermore, the additional return opportunity provided to account holders who included their gold in the system within the scope of the practice has also come to an end with the repealed regulation.
PREVIOUSLY OPENED ACCOUNTS WILL BE PROTECTED
The repeal of the regulation will not affect previously created term accounts. The existing rights of those who transferred their physical gold to the system within the scope of the practice and opened term accounts in return will be protected.
These accounts will continue to operate until the maturity date in accordance with the contract terms determined at the time of opening.
IMPLEMENTED IN 2022
With the regulation published on March 14, 2022, the way was paved for domestic resident individuals and legal entities to include their physical gold in the system by delivering it through authorized jewelers and refineries or directly to bank branches.
Within the scope of the practice, the principles regarding the conversion of physical assets deposited into gold accounts at banks into Turkish lira deposit and participation accounts were determined, and a support mechanism for account holders was established.
GOLD WAS CONVERTED TO TL ACCOUNTS
The amount of pure gold in the accounts included in the system was converted into Turkish lira at the conversion price. Subsequently, a 3-month, 6-month, or 1-year Turkish lira deposit or participation account was opened on behalf of the account holders.
Following the conversion process, banks sold the gold transferred to the system to the Central Bank of the Republic of Turkey at the determined conversion price.