In 3 Weeks, Around $30 Billion in Reserves Depleted, Turkey May Use Gold Reserves to Stabilize Exchange Rate

BlockBeats News, March 25th. Impacted by the Middle East situation, Turkey's foreign exchange reserves have rapidly declined, raising concerns in the market about its exchange rate stability. Data shows that in the past three weeks, the Turkish central bank has intervened in the market with about $30 billion to support the lira.

Analysts pointed out that under the dual pressure of foreign capital outflows and soaring energy costs, Turkey may be forced to sell or use its gold reserves through swaps to supplement foreign exchange liquidity. Currently, its gold reserves exceed $100 billion.

Affected by the conflict, international oil prices have sharply risen, further exacerbating Turkey's current account deficit and inflationary pressure. The market generally expects that if the situation persists, Turkey may face currency depreciation and interest rate hike pressure.