“GOLD FOR DOLLARS”: Turkey Offloads 22 Tonnes of Gold to Defend Lira
ANKARA / ISTANBUL — The Central Bank of the Republic of Türkiye (CBRT) has executed its largest weekly gold liquidation in nearly eight years, offloading 22 tonnes of bullion in a desperate bid to stabilize the plummeting Turkish Lira. According to data released on Thursday, March 26, 2026, the sale marks the sharpest weekly decline in gold reserves since the currency crisis of August 2018.
The move highlights the extreme economic pressure on Ankara as the war in the Persian Gulf drives energy costs to record highs and triggers a massive exodus of foreign capital from emerging markets.
The Liquidation Details
The massive sale was part of a broader $12.2 billion drop in total gross reserves for the week ending March 20, 2026.
- Gold Value Crash: Total gold reserves fell from $134 billion to $116 billion in a single week. While 22 tonnes were physically moved or swapped, a significant portion of the value drop was also driven by the 18% plunge in global gold prices as investors scrambled for dollar liquidity.
- The London Swap: Reports from Bloomberg and JPMorgan suggest that the CBRT is utilizing its gold holdings at the Bank of England for “gold-for-foreign-currency” swap transactions. This allows the bank to acquire U.S. dollars immediately to intervene in the FX market.
- Lira Under Siege: The Turkish Lira hit its 11th record low since the start of the Iran conflict, trading at approximately 44.35 per dollar earlier this week.
Why Now? The “Triple Squeeze”
Turkey’s economy is currently facing a “triple squeeze” of rising costs, falling reserves, and geopolitical uncertainty.
| Economic Pressure | Impact on Türkiye |
| Energy Spike | As a major energy importer, Turkey’s current account deficit is widening as Brent crude hovers near $107 per barrel. |
| Capital Outflow | Foreign investors are dumping Turkish government bonds at the fastest pace on record to seek safety in the U.S. Dollar. |
| Interest Rate Hold | The CBRT held its benchmark rate at 37% in March, breaking a cycle of cuts as the “war-driven” inflation outlook made further easing impossible. |
A Shift in Strategy
For years, Turkey has been one of the world’s most aggressive gold buyers, seeking to reduce its reliance on the U.S. dollar. However, the current crisis has forced a reversal of that multi-year trend.
- From Buyer to Seller: After adding 27 tonnes in 2025, the central bank is now being forced to treat its gold as an “active emergency fund” rather than a passive reserve.
- Dollar Priority: The priority has shifted entirely to rebuilding foreign exchange buffers. While gold reserves dropped by $18 billion, gross foreign currency reserves actually increased by $5.8 billion, indicating that gold is being converted directly into cash to fight the Lira’s slide.
- Domestic Impact: At the “street level” in Istanbul and Ankara, the liquidity crunch is becoming visible, with banks reportedly tightening credit and the central bank suspending one-week repo auctions to drive up borrowing costs.
What’s Next?
As the Friday, March 27 sunrise deadline in the Iran conflict approaches, Turkey’s role as a mediator at the “Islamabad Summit” is not just a diplomatic mission—it is an economic necessity. If the conflict enters a “Total Infrastructure Phase” tomorrow, the resulting surge in oil prices could force Ankara to liquidate even more of its 650-tonne gold stockpile to keep the economy afloat.