Turkish Government Says "Under the Pillow" Gold Habit Hurts Economy

For generations, many Turks have kept gold at home as a hedge against uncertain times, distrustful of banks following past financial crises and periods of high inflation, according to NPR News. The practice, often described as keeping gold "under the pillow," has become a deeply rooted cultural habit passed down through families.

Turkish government officials now say this tradition is having a negative effect on the broader economy, NPR News reported. Authorities argue that large amounts of gold sitting idle in homes, rather than circulating through the formal banking system, represent an underused economic resource.

According to the report, the government is seeking ways to encourage citizens to bring their privately held gold into banks and financial institutions, where it could be tracked, taxed, or used to support broader economic activity.

The habit of hoarding gold at home has long been tied to Turkey's history of economic volatility, including periods of steep currency devaluation and inflation that eroded public confidence in banks and the national currency, the report noted.

NPR News did not specify what concrete measures, if any, the government has proposed or implemented to change public behavior around gold storage. The report characterized the issue as an ongoing tension between deeply held cultural practices and official economic policy goals.