Striking claim from Bloomberg: Central Bank to use $135 billion in gold reserves to support the Lira

Claims have emerged that Turkey may use its gold reserves to limit volatility in the Turkish Lira.

NEW TOOLS ON THE AGENDA TO SUPPORT THE LIRA

In a report by Bloomberg News citing sources familiar with the matter, it was stated that the Central Bank of the Republic of Turkey is considering expanding its policy tools to counter market fluctuations exacerbated by geopolitical risks stemming from Iran.

GOLD-COLLATERALIZED SWAP OPTION UNDER EVALUATION

According to the information in the report, the Central Bank is examining the possibility of conducting foreign exchange swap transactions in the London market in exchange for gold collateral. It is stated that this step aims to alleviate pressure on the exchange rate by increasing foreign currency liquidity.

NO OFFICIAL STATEMENT

While it is noted that the Central Bank has not made any assessment regarding these claims, there has been no statement from official institutions regarding the report yet.

It is known that Turkey has increased its gold reserves in recent years as part of a policy to reduce dependence on dollar assets. According to Bloomberg data, the Central Bank's gold assets were recorded at approximately $135 billion as of the beginning of March.

News Source: 12punto