Economics
As Lira Crisis Raged, Turkish Banks Were Cashing In Their Gold
- Central bank gold holdings fell 20 percent to 15.5m ounces
- Loosening of reserve requirements opened floodgates in August
Photographer: Kerem Uzel/Bloomberg
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Commercial lenders in Turkey have pulled as much as $4.5 billion worth of gold reserves since mid-June in an effort to avert a liquidity crisis as the lira plunged.
Weekly holdings reported by the Central Bank of Turkey fell by almost a fifth since June 15 to 15.5 million ounces with the lion’s share -- $3.3 billion -- of the exodus sparked by the monetary authority’s Aug. 13 move to lower reserve requirements.