The Central Bank of Turkey is preparing to defend the national currency against volatility linked to the conflict with Iran by considering a range of measures, including the sale of its massive gold reserves, Bloomberg says citing sources familiar with the matter.
Plans to Convert Gold into Foreign Currency
According to the agency’s sources, the regulator has already discussed plans to exchange gold for foreign currency on the London market.
Economist Fatih Akcelik from JPMorgan Chase & Co. estimates that precious metals worth around $30 billion out of Turkey’s total $135 billion in assets held at the Bank of England could be used for such operations.
However, this estimate remains approximate, as gold prices have recently declined significantly after retreating from historical highs.
Inflation Pressures and Policy Response
Inflation in Turkey resumed its upward trend in February, reaching 31.53% compared to 30.65% in January 2026.
In March, amid the situation in the Middle East, the central bank halted its cycle of key rate cuts, keeping the benchmark rate unchanged at 37% per annum.
Rising Costs of Currency Support
The report notes that Turkish authorities aim to maintain a so-called real appreciation of the lira, meaning the currency should not depreciate faster than inflation rises.
However, a significant reduction in reserves and a sharp increase in import costs over recent weeks have made maintaining this policy considerably more expensive.
Lira Weakens Against the Dollar
The US dollar is currently trading at 44.35 lira, compared to 41.95 just five months ago — a level that had already marked a historic low for the Turkish currency at the time.
The latest developments highlight growing pressure on Turkey’s financial system as global and regional factors continue to weigh on the lira.
Pravda / ABC Flash Point News 2026.
Selling gold reserves is not a smart move if the war against Iran escalates.
Just another Zionist scam to force countries to hand over their gold to the USA in exchange to save their currency, while the US dollar is dead and DC is bankrupt.