Turkey to dedicate gold over dollar and other currencies in providing reserves for their banking system


A great example of this is with the central bank of Russia, who as of this month holds nearly as much in gold as they do in dollars (Treasuries).

The gold reserves of the Central Bank of Russian have grown to over $89 billion as of April 2018. 

And as of March 2018, Russia held $96.1 billion in U.S. Treasury Bonds down from $131.8 billion in January 2014 but up from $66.5 billion in April 2015. - Zerohedge

So using the Russia central bank as a model, the next nation to focus on gold acquisition at the expense of dollar reserves appears to be Turkey.

Turkey’s economy has been in a tailspin with an inflationary currency, but the country is using something rare to help stabilise itself: gold. 

In late 2011, Turkey started to allow commercial banks to use gold instead of the Turkish lira for their required deposits at the central bank. These deposits are known as reserve requirements and help ensure that the banks are capitalised. 

Over the past six-or-so years, Turkey’s central bank has accumulated an additional 400 metric tonnes of gold. That’s a lot of yellow bricks – more than what Britain has - and the sizeable stash has the possibility to take the edge off the crisis. 

To put the Turkish gold haul in perspective, there are 10 million ounces of gold – roughly 311 tonnes - at the Bank of England, according to the New York-based financial consulting firm CPM Group. 

The burgeoning balance of bullion comes as the result of a change in banking rules made earlier this decade. 

“I thought the Turkish thing was pure genius,” says Jeff Christian, founder of CPM Group. “It was using gold in the way that you should use it.” – Middle East Eye