FX.co ★ Turkey withdraws all gold from US

Turkey withdraws all gold from US

Countries ruled by autocratic governments have a lot in common. Hardline state leaders are frequently to blame for a severe downturn in domestic economies. They do not tolerate any opposition. Abusing power, they prosecute opponents for any criticism. Corruption and nepotism are a common practice among top and average civil servants. National currencies usually respond to such an inefficient policy with a slump. Amazingly, leaders of all ailing economies unanimously point at the common bitter enemy: the US. Indeed, no one in power has ever dared to take responsibility for failed reforms and fatal decisions. Instead, they shift responsibility toward the US, the world’s largest economy which has proven its resilience over centuries. Turkey’s President Recep Tayyip Erdogan is no exception. He publicly accused the West, particularly the US, of orchestrating an economic crisis in Turkey. The strongman made this loud statement at an informal meeting with the youth. Citing Erdogan, it is Donald Trump who is to blame for the weak Turkish lira, high inflation, swollen dollar-denominated debt, shaky investor sentiment, turbulence of Turkish stocks, looming metal tariffs, and other troubles. In retaliation for the US sanctions, Recep Tayyip Erdogan decided to withdraw Turkey’s gold reserves of almost 29 tons stored in the vaults of the US central bank. Turkey’s private banks had to obey the President’s directive despite common sense. In total, about 220 tons of gold were repatriated to Turkey.