Turks are piling into the dollar, gold and stocks as 67% inflation savages their ‘worthless lira'

Down a dimly lit alleyway tucked just inside Istanbul’s Grand Bazaar, a few dozen men are packed together, dealing in precious metals and currencies. These days it’s dollars and gold they’re after, as the Turkish lira has lost trust due to high inflation. Savers are flocking to the gold markets or investing in stocks to protect their savings. Many exchange offices are offering to buy dollars at better rates to meet the demand. The high inflation has left people struggling financially, relying on credit cards to make ends meet. Experts suggest that relying on credit cards is unsustainable. The government’s efforts to help the poorest Turks by doubling the minimum wage may have worsened inflation. The stock market remains a bright spot, with gains driven by local investors seeking to preserve the value of their cash in a high-inflation environment. Turkey’s young population, ties to Europe’s economy, and exposure to fast-growing economies in the Middle East make it an attractive investment destination.