Central Bank halts gold purchases

The Central Bank of the Republic of Turkey (TCMB) has halted the purchase of gold produced across the country. With a regulation introduced in 2017, the Central Bank had been granted the priority right to purchase gold produced in Turkey. However, the recent decision indicates that this practice has ended and that gold produced from local mines will now be sold directly to the market.

THE GAP BETWEEN THE DOMESTIC MARKET AND WORLD MARKETS WILL CLOSE

This decision by the Central Bank is expected to ensure that local gold production is traded at more balanced prices in the domestic market, contributing to closing the price gap between Turkey and global gold markets. According to economists, with the implementation of this decision, the gap between the quotas applied to gold imports and prices in Turkey will narrow significantly.

NEW MOMENTUM EXPECTED IN THE SECTOR

The decision is also expected to have positive effects on the sector, which has been going through a difficult period due to restrictions on gold imports. The annual local gold production of approximately 40 tons will be offered for sale directly from the mines, and this situation could provide a significant solution to the current account deficit problem in gold imports.

Speaking to Ekonomim, Turkey Miners Association President Mehmet Yılmaz stated that the decision taken by the TCMB aims to reduce price differences within the country. Yılmaz said, "This decision will help close the price gap and will prevent tendencies toward unfair practices in the market."

According to World Gold Council data, Turkey's gold reserves are at the level of approximately 643 tons, and Turkey ranks as the 3rd country that purchases the most gold in the world. It is stated that the Central Bank of the Republic of Turkey's halting of gold purchases may be related to factors such as reserve diversification or volatility in global markets.

It is noted that the Central Bank's halting of gold purchases will have both negative and positive effects on Turkey's current account deficit. While the realization in gold prices creates a negative effect, reducing imports may provide positive effects.

INVESTMENT IN GOLD RESERVES CONTINUES

Efforts to increase Turkey's gold reserves are ongoing. As of 2025, the increase in the TCMB's gold purchases has continued. According to the 3rd quarter data of 2025, Turkey's gold reserves rose to 111.2 billion dollars.

The Central Bank's halting of local gold purchases means that gold extracted from mines will be sold directly to the market.