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Increased gold reserves help stabilize Turkey's currency ahead of May elections  

The value of Turkey's gold reserves have reached an all-time high of $50.6 billion and account for almost 40% of the central bank's gross foreign assets.

ISTANBUL, TURKEY - DECEMBER 05: People wallk past a currency exchange shop on December 5, 2016 in Istanbul, Turkey. As the Turkish Lira plunged to record lows in past weeks, President Recep Tayyip Erdogan in a speech Saturday said his political enemies were trying to sabotage the economy and urged citizens to convert their foreign currency savings into lira or gold. Borsa Istanbul, Turkey's main stock exchange, became the first institution to act on the presidents call, converting all it's cash assets to li
To:

Al-Monitor Pro Members

From:

Piero Cingari

Financial analyst

Date:

March 22, 2023

Bottom Line:

In January, the Central Bank of Turkey (CBT) added 23 tonnes of gold to its official reserve holdings, maintaining the positive trend of the past year. The value of the CBT's gold reserves reached an all-time high of $50.6 billion and account for almost 40% of the CBT's gross foreign assets.

The CBT's new reserve management approach has coincided with a period of relative stability for the lira, but it has not been a driving force behind that. The "liraization" policy implemented by the government last summer led to a greater proportion of lira-denominated deposits and a reduction in exchange rate pressures. This year's general elections in Turkey will certainly be the most influential factor in determining the trend of the Turkish lira.