Turkey Expands Gold Reserve by 127 Tons

Turkey has added 127.7 tonnes of gold to its reserves over the past year, according to the Latest figures of the Turkish Central Bank. In one year's time, the total gold reserve grew from 377 to 504.7 tonnes, bringing the stock back to the level of the end of 2015.

Part of that increase is attributable to central bank gold purchases, but the figure is inflated by private gold holdings held by commercial banks. For a few years now, these private gold assets have been Counted in the total public gold supply.

The graph below shows that Turkey has invested a lot in the precious metal over the past year. The country, like China and Russia, is trying to further expand its gold reserves. In the past year, the Turkish central bank also received the Exclusive right to buy up domestic gold production, a measure that fits within the strategy of expanding the gold reserve.

Turkey further expands gold reserves

At the end of 2016, Turkish President Erdogan called on his people to Dollars to exchange for Turkish lira and gold, a call that the Turks have apparently heeded. That decision was partly due to the failed coup earlier that year. Since then, relations with the West have not exactly improved. As a result, the country is erring on the side of caution and building up more financial buffers to absorb setbacks.

Many non-Western countries have added gold to their reserves in recent years, as the precious metal offers protection against economic and political risks and because it makes countries less vulnerable to economic sanctions. Unlike foreign exchange reserves, gold reserves can be mobilized under all circumstances.

Turkey added 127 tonnes of gold to reserves last year