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

Jewelry displays gold at the Grand Bazaar in Istanbul, Turkey, on Aug. 26, 2026. Finance Minister Mehmet Şimşek has said that about $640 billion in gold and foreign currency is held outside the financial system. For many Turkish savers, physical gold is still a safe way to protect their money from inflation and economic uncertainty. This practice is known as "yastık altı altın," or "gold under the mattress," referring to the tradition of keeping wealth in physical assets rather than in banks. Emre Çaylak for NPR hide caption toggle caption Emre Çaylak for NPR ISTANBUL — In Turkey, gold is far more than a decorative accessory. It is gifted throughout life's major milestones and stashed safely at home—a time-honored practice designed to protect savings against frequent currency devaluations and a volatile national economy. However, Turkish officials and economists warn that this culture of gold hoarding is actively undermining the country's financial future. At the bustling Mahmutpaşa Yokuşu market in the heart of Istanbul, store owners call out their wares while shoppers dart between stalls, snapping up everything from kitchen gadgets and blankets to elaborate wedding dresses. Local...