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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe Central Bank of the Republic of Turkey (CBRT) has reportedly sold and swapped approximately 60 tons of gold reserves, valued at over $8 billion, in the two weeks following the onset of the Iran conflict. Official data indicates a significant decline of 6 tons during the week of March 13, followed by a substantial drop of 52.4 tons in the week ending March 20. This strategic move was designed to secure low-cost USD funding through swap agreements to bolster the nation's disinflation strategy. By offloading these assets, the central bank aims to stabilize the Turkish Lira and cover budget deficits exacerbated by surging energy prices. The liquidation represents more than 10% of Turkey's total gold reserves, highlighting the urgency of defending the currency amid regional instability. Market analysts suggest that such significant selling by a major central bank has contributed to the recent technical breakdown in global gold prices.