Gold reserves held by the central bank of Turkey have dropped sharply, declining by more than 118 tonnes over a two-week period as authorities respond to economic pressures linked to the Iran war. According to recent data, reserves fell by 69.1 tonnes in the latest week alone, bringing total holdings down to 702.5 tonnes.
This marks the largest weekly decline in the country’s internationally standardised gold reserves since at least 2013, when the central bank began publishing such data. The drop reflects a strategic decision by the Central Bank of the Republic of Turkey to either sell or swap gold in order to generate liquidity in both local currency and foreign exchange markets.
Banking estimates suggest that approximately 26 tonnes of gold were directly sold during the most recent week, while around 42 tonnes were used in swap transactions. Although these figures have not been officially confirmed by the central bank, they provide insight into how reserves are being utilised to stabilise financial conditions.
The decline follows an earlier weekly drop of 49.3 tonnes, indicating a sustained effort by authorities to support the economy. In addition to drawing on gold reserves, the central bank has also engaged in significant foreign currency sales and other financial measures to stabilise the lira and maintain market liquidity.
These actions come amid rising global energy prices and broader economic uncertainty triggered by geopolitical tensions involving Iran. The increased cost of energy has placed additional strain on the Turkish economy, prompting more aggressive intervention from monetary authorities.
Speaking ahead of investor meetings in London, Central Bank Governor Fatih Karahan defended the use of gold-backed transactions. He described the bank’s strategy as “proactive, flexible, and controlled,” emphasising the importance of maintaining liquidity and stability during periods of market volatility.
Overall, the sharp decline in gold reserves highlights the extent to which Turkey is leveraging its financial assets to manage external shocks and support its currency during a period of heightened economic pressure.