Commodities March 26, 2026

Turkey’s Central Bank Cuts Gold Holdings by About 60 Tons in Two Weeks After Iran War Began

Reserve data show large weekly drawdowns as sales and swaps raise pressure on bullion and relate to FX liquidity operations

By Leila Farooq
Turkey’s Central Bank Cuts Gold Holdings by About 60 Tons in Two Weeks After Iran War Began

Turkey’s central bank reduced its gold holdings by roughly 60 tons, valued at more than $8 billion, across two consecutive reporting weeks after the outbreak of the war in Iran. Weekly central bank figures show a 6-ton decline in the week of March 13 and a 52.4-ton fall in the week of March 20. Officials and unnamed sources describe a mix of outright sales and swap transactions that were used to secure foreign exchange and lira liquidity, moves that coincided with downward pressure on global bullion prices.

Key Points

  • Turkey’s central bank reduced gold reserves by about 60 tons over two weeks, with the decline valued at more than $8 billion.
  • Official reserve data record a 6-ton drop in the week of March 13 and a 52.4-ton decline in the week of March 20, totaling a 58.4-ton reduction across the two reporting periods.
  • Transactions comprised both outright sales and swaps that provided foreign exchange or lira liquidity, and these moves coincided with additional downward pressure on bullion prices - impacting the bullion market and FX/liquidity operations.

Turkey’s official reserve statistics indicate the central bank moved approximately 60 tons of gold out of its holdings over a two-week span immediately following the start of the war in Iran. The total is valued at more than $8 billion based on the figures cited within the reserve reporting periods.

Data published by the central bank show a decline of 6 tons in the week of March 13, followed by a 52.4-ton reduction in the week of March 20. The combined 58.4-ton decline is recorded across the two consecutive weekly reporting periods and represents a marked drawdown in the country’s gold reserves.

People familiar with the transactions indicated the central bank executed a mix of outright gold sales and swap operations. While some of the bullion was sold, the larger portion of the movement involved swaps that effectively delivered foreign exchange or local currency liquidity - operations designed to secure foreign exchange or liras through contractual arrangements rather than immediate spot sales.

Those transactions took place in the two weeks after the war in Iran began and coincided with downward pressure on bullion prices. Market observers noted that the volume of gold entering the market via sales and swap settlements contributed to that price pressure during the period in question.


Context from the reserve reports

The central bank’s weekly reserve breakdown explicitly records the tonnage changes for the two weeks referenced. The reported totals reflect the net contraction in gold holdings without additional commentary on future intentions or policy settings from the central bank itself.

Implications reported

  • The shift included both sales and swaps, with swaps used to obtain foreign exchange or lira liquidity.
  • The transactions were clustered in the immediate two-week period after the war in Iran began.
  • Market effects included additional downward pressure on bullion prices during that time.

Beyond the figures and the description of the transaction types, the reserve reports do not provide further explanation of timing, counterparties, or the central bank’s broader strategic intent. The data instead present the measurable outcome: a significant, short-term reduction in Turkey’s gold reserves.

Risks

  • The rapid drawdown in gold reserves reduces the stock of bullion available to the central bank, which may affect its toolbox for reserve management - relevant to monetary authorities and financial markets.
  • Large volumes of gold entering the market through sales and swaps contributed to downward pressure on bullion prices during the period, posing risks to bullion market stability.
  • Use of swaps to secure foreign exchange or lira liquidity signals dependency on transactional arrangements whose terms and counterparties are not detailed in the reserve reports, creating uncertainty for FX and liquidity conditions.

More from Commodities

U.S. Officials Downplay Fuel Shock as Global Energy Leaders Warn of Prolonged Supply Crisis Mar 26, 2026 Iran Signals Openness to Spanish Requests on Strait of Hormuz Transit Mar 26, 2026 U.S. Presents 15-Point List to Iran as Talks Show Early Signs of Traction Mar 26, 2026 Trump Pushes Iran Toward a Deal, Warns of Continued Strikes if Talks Fail Mar 26, 2026 Iran Calls U.S. Plan to End the War 'One-Sided and Unfair', Says Talks Not Yet Realistic Mar 26, 2026