In January, Turkey secured its position as the top gold purchaser worldwide, with a significant acquisition of 23 tonnes of the precious metal. This purchase brought the country’s total gold reserves to an all-time high of 565 tonnes, as reported by the World Gold Council.
Globally, central banks increased their gold holdings by a net total of 31 tonnes in January, marking a 16% rise from the previous month. China’s People’s Bank and the National Bank of Kazakhstan followed Turkey as the second and third largest buyers, adding 15 tonnes and 4 tonnes to their reserves, respectively.
Gold’s Role as a Financial Safeguard in Turkey
Turkey’s strategy of gold accumulation over recent months, positioning it as the foremost buyer among central banks last year, underscores the metal’s value as a defense against economic uncertainties. Gold enjoys popularity among Turkish citizens as well, serving as a protective asset against currency devaluation and inflation.
Following the catastrophic earthquakes, Turkey momentarily halted certain gold imports to address economic challenges, highlighting efforts to curb gold imports to support its weakening external financial standing.
