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Investing.com -- The recent gold price rally has significantly increased the Turkish central bank’s foreign assets by $30 billion this year, according to new economic data.
The Central Bank of the Republic of Turkey (CBRT) has seen its total foreign assets rise from $160 billion at the beginning of 2025 to over $190 billion in October, coinciding with gold prices reaching a record high of $4,050 per ounce this week.
Capital Economics noted that "almost all of this increase reflects the gold rally," adding that the central bank’s gold holdings have grown by approximately 10% over the past year to around 640 tonnes.
While this surge in gold prices has strengthened Turkey’s external financial position, analysts suggest it creates an illusion of progress in the country’s ongoing economic rebalancing process. The higher gold prices are not expected to significantly impact Turkey’s current account deficit.
However, the increased value of gold reserves could potentially generate positive wealth effects that support consumer spending in the Turkish economy, which might slow the country’s disinflation efforts.
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