Turkey can hardly boast of economic stability. Its national currency is on an endless roller coaster. Economic expansion has been slowing for a while. This is why the country has been looking for a stable asset to invest in. As it turns out Turkey trusts gold much more than the lira. It has been stocking up on precious metal for some time.

The Central Bank of the Republic of Turkey bought 23 tonnes of gold in January, making it the biggest buyer of the precious metal among central banks globally over the period, according to Bloomberg. Notably, the regulator can barely be called an independent institution as it strictly follows Recep Erdoğan’s orders. The country now holds 565 tonnes of gold, the highest level on record, the World Gold Council pointed out.

The People’s Bank of China and the National Bank of Kazakhstan were the second and third biggest acquirers of gold, adding 15 tonnes and 4 tonnes, respectively.

Gold serves as a hedge against inflation which makes Turkey the largest buyer of this precious metal in the world. The central bank has been accumulating gold for several months. In 2022, it was the largest buyer of this commodity among the monetary authorities.

Gold is also a popular asset among Turkish households, who use it as a hedge against currency and inflationary pressures.