The Central Bank of Turkey sold approximately 60 tons of gold over two weeks, worth $8 billion.

Hot Topics

            My Stocks
Data Center
Market Center
Capital Flow
Simulated Trading
        

        Client

【Global Network Finance Comprehensive Report】According to Bloomberg, the Central Bank of Turkey has utilized approximately 60 tons of gold, worth over $8 billion, through direct sales and swap operations, putting downward pressure on gold prices.

According to the latest published data, Turkey’s gold reserves decreased by 6 tons in the week of March 13 and dropped another 52.4 tons in the week of March 20, indicating a significant decline in gold reserves. According to insiders, part of this was sold directly, while most was used through swap agreements to obtain foreign exchange or lira liquidity.

The scale of the Turkish Central Bank’s gold sales exceeds the outflows from gold ETFs during the same period. According to Bloomberg data, approximately 43 tons flowed out of gold ETFs in the same two weeks. ETFs are one of the main ways for institutional and retail investors to allocate gold.

Bloomberg reported earlier on Tuesday that the Central Bank of Turkey is discussing using its gold reserves for trading in the London market to prevent the lira from further depreciating due to the war. This news caused global spot gold prices to shift from rising to falling that day. Analysts say this indicates that Turkey’s gold sales may continue.

This sale marks a clear shift in Turkey’s policy. For the past decade, Turkey has been one of the most aggressive gold buyers globally, aiming to reduce reliance on dollar-denominated assets. This month, gold prices have fallen by about 15%, as investors took profits following significant increases since last year.

For central banks, simultaneously selling physical gold while agreeing to repurchase it in the future through swap agreements is not uncommon; this effectively acts as collateral for obtaining low-cost dollar financing.

According to a report by JPMorgan economist Fatih Akcelik on Tuesday, Turkey has about $30 billion of gold reserves stored at the Bank of England, which the Central Bank of Turkey can use for foreign exchange intervention without logistical restrictions. (Chen Shiyi)

 Sina Cooperative Large Platform Futures Account Opening Safe and Fast with Assurance

A wealth of information and precise interpretations, all in the Sina Finance APP

Editor: Zhu Henan