Turkish habit of stashing gold "under the pillow' hurts economy, government says

What the report says

Turkey’s government is renewing criticism of a long-standing habit among households: keeping gold savings at home rather than in banks. According to NPR World’s summary of the issue, officials say the practice, often described as storing wealth “under the pillow,” reduces the amount of money circulating through the formal financial system and can weigh on the broader economy.

The reported concern centers on trust and tradition. For years, many Turks have preferred physical gold as a safeguard against uncertainty, especially during periods of economic instability or inflation. That preference has left large amounts of private wealth outside banking channels, limiting opportunities for lenders to put those assets to work in business lending, investment or other economic activity.

The government’s position, as presented by NPR World, is that encouraging people to place more gold in banks or formal savings products could help unlock dormant capital. In general, countries with large informal holdings of precious metals sometimes seek ways to bring those assets into the financial system, though the exact policy tools vary and the article text available here does not specify any concrete Turkish proposal.

The issue matters because it connects household saving habits to national economic performance. It also reflects a broader tension between cultural practices and policymakers’ efforts to deepen financial participation and support growth.