The Central Bank of Turkey sells and swaps approximately 60 tons of gold, intensifying downward pressure on the price of gold.

Within two weeks of the outbreak of the Iran war, the Turkish central bank sold and swapped around 60 tons of gold, exacerbating downward pressure on the price of gold. According to the latest data released by the central bank, Turkey's gold reserves decreased by 6 tons in the week of March 13, and by 52.4 tons in the week of March 20, indicating a sharp reduction in reserves. According to sources, some of the gold was sold directly, while most of it was obtained through swap agreements for foreign exchange or lira. The Turkish central bank declined to comment. This move comes at a time when Turkey's anti-inflation strategy is under pressure. The bank's strategy heavily relies on maintaining the stability or gradual devaluation of the lira exchange rate, including through interventions with hard currency by state-owned banks. Since the conflict began, rising energy import costs and increasing demand for dollars have made it more difficult to maintain this strategy. ris ibrik, founder of Istanbul-based Phoenix Consultancy, said officials have sold and arranged options on gold from the central bank's $135 billion reserve to meet liquidity needs and stabilize domestic demand. She estimated total sales of 58.4 tons, with more than half carried out through overseas "gold-for-foreign exchange" contracts.