Increased gold reserves help stabilize Turkey's currency ahead of May elections
Al-Monitor Pro Members
March 22, 2023
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.
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