Turkish President Recep Tayyip Erdogan announced the reduction of the value-added tax on basic food commodities from 8% to 1%.

President Erdoğan participated, via video communication, from Wahideddin Palace in Istanbul, in the promotional meeting for the Turkish economy model, new steps and anti-inflation measures, today, Saturday.

Erdogan pointed out that the goods included in the reduction of value-added tax have a large share in the inflation basket.

We are moving forward on the path of developing our country's economy;

With investment, employment, production, export and the surplus in the current account.

A new mechanism to benefit from gold savings

Meanwhile, Turkish Finance and Treasury Minister Nureddin Nebti announced - today, Saturday - a new mechanism for benefiting from citizens' gold savings.

This came in a speech during the event introducing the new steps and measures aimed at confronting inflation in the country within the framework of the Turkish economic model.

The minister pointed out that the Turkish economy model is based on 4 pillars: investment, employment, production and export.

He explained that the total deposits in bank accounts protected from exchange rate fluctuations - which Turkey began to open last December - approached 340 billion liras.

He said that his country will start a new system to encourage citizens to benefit from the "gold hidden under the pillows" to support the national economy.

The volume of gold in Turkish homes amounts to about 5,000 tons, equivalent to between 250 and 350 billion dollars (Getty Images)

He explained that the government will start the new system as of March 1, in cooperation with 1,500 goldsmiths, so that there will be at least one center in each state.

The Turkish minister added that:

  • Through the new mechanism, citizens will be able to easily enter their golden savings into the economic system through the goldsmiths and the concerned contracting banks.

  • The mechanism allows citizens to protect the value of their gold savings by opening a deposit account for gold transfer, and a participatory account in Turkish lira.

  • Opening these accounts will allow citizens at the same time to make profits without risk.

  • Participation banks and the Turkish government will be among the first contracting banks in the new mechanism.

With regard to inflation, Nibani said, "We will face - hand in hand - steps that seek to increase inflation. We are with the people at the time of achieving profits and savings, and together when taking measures to confront inflation."

A vegetarian said - a few days ago - that the volume of gold in homes amounts to about 5,000 tons, equivalent to between 250 and 350 billion dollars.