Data from the Central Bank of the Republic of Turkey (CBRT) shows a record gold sell-off as the country struggles to defend the lira amid an energy price shock linked to the Iran coònlict.
📉 GOLD VOLUME SOLD
Week ending March 13: 6 tons sold
Week ending March 20: 52 tons sold
Total over 2 weeks: 58 tons – worth over $8 billion
This marks the largest decline in 7 years.
💰 TRANSACTION METHODS
More than half of the gold was used to borrow USD via swap agreements
The remaining portion was sold directly on the open market
🌍 GLOBAL CONTEXT
Turkey’s gold sales exceeded total outflows from all global gold ETFs (~43 tons) during the same two weeks
Turkey became the world’s largest source of gold liquidity during this period
💵 FOREIGN RESERVES DEPLETING
Turkey’s total foreign exchange reserves dropped by approximately $40 billion, down to around $175 billion
This is the lowest level since Q3 2025
🔥 CAUSE: IRAN CONFLICT DRIVES ENERGY PRICES HIGHER
The lira is under heavy pressure due to soaring energy import costs and rising demand for USD
The central bank has been forced to burn through reserves to intervene, with gold becoming a last-resort asset
💡 CONCLUSION
Rising energy costs driven by geopolitical tensions in the Middle East are forcing Turkey to liquidate gold at an unprecedented pace to support its currency — a clear sign that geopolitical crises are tightening the grip on energy-importing economies.
