AK Party MP Suggests Digital Currency to Curb FX Demand and Inflation in Türkiye
İsmail Güneş
AK Party Uşak MP İsmail Güneş has proposed a digital currency model to curb individual demand for foreign exchange (FX), which he argues is a key driver of inflation in Türkiye. Speaking during a Parliamentary Budget Commission session, Güneş stated that if a system had been in place to prevent citizens from buying or saving in foreign currencies, neither the exchange rate nor inflation would have surged.
Foreign Currency Savings Labeled a Structural Problem
During the session where Central Bank Governor Fatih Karahan delivered a briefing, Güneş highlighted individual FX holdings as a deep structural issue for Türkiye’s economy. He recalled the 1994 currency crisis, pointing out how speculative FX demand can erode reserves and exacerbate inflationary pressure.
According to Güneş, this cycle will continue unless Türkiye takes radical steps:
“Without a system to deter FX holdings, reserves drain, the currency weakens, and inflation worsens.”
Güneş Calls for FX-Limited Digital Investment System
To tackle this problem, Güneş proposed a new digital investment mechanism linked to the value of the dollar, euro, or gold, which would allow individuals to invest digitally without directly holding foreign currency.
“A dollar- or euro-pegged digital currency could replace FX holdings for investors,” he said.
“Only importers and exporters would be permitted to access FX via banks.”
This concept would ban personal FX purchases, aiming to stabilize reserves and redirect citizens toward controlled digital investment instruments.
Public Reaction Recalls Past FX Restrictions
Güneş’s remarks immediately sparked debate, recalling past currency controls in Türkiye. Personal FX transactions were only liberalized in the post-1980 economic reforms, widely seen as a symbol of economic liberalization.
He defended the proposal as a means to control inflation and safeguard macroeconomic stability, not as a return to authoritarian economic policy.
Critics: The Real Issue Is Trust, Not Currency Access
Economist Uğur Gürses criticized Güneş’s proposal via social media, arguing that it misses the root cause of the problem.
“If ruling party MPs asked why citizens prefer FX savings, they wouldn’t seek refuge in currency controls,” Gürses wrote, highlighting structural distrust in the system.
His comments reflect broader skepticism toward restricting financial freedoms without addressing underlying economic and political uncertainties.
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