Friday, April 20, 2018

Turkey Will Repatriate All Its Gold Held in the US; But Why?

This morning, the government of Turkey announced that it has decided to repatriate all its gold stored at the New York Federal Reserve bank and have it delivered it to the Istanbul Stock Exchange.

According to the latest IMF data, Turkey’s gold reserves are estimated at 591 tons, worth just over $23 billion. This makes Ankara the 11th largest gold holder, behind the Netherlands and ahead of India.

Turkey's President Erdogan has taken a tough stance against the US dollar.

"Why do we make all loans in dollars? Let’s use another currency. I suggest that the loans should be made based on gold,” Erdo─čan said during a speech at the Global Entrepreneurship Congress in Istanbul on April 16, according to Hurriyet.

He added that “with the dollar the world is always under exchange rate pressure. We should save states and nations from this exchange rate pressure. Gold has never been a tool of oppression throughout history."

Gold bugs shouldn't hail this as a government coming to its senses. Money supply in Turkey is growing at a pace in excess of 20% and Erdogan has been forceful in preventing the Turkish government from aggressively raising rates to halt the money growth explosion.

More than holding Turkey's gold in reserve to back up the Turkish currency, the lira, Erdogan may want to hold the gold in the homeland so that he can sell it.

-Robert Wenzel  

(Sources: IMF, Hurriyet, ZeroHedge, TradingEconomics)


  1. sure Turkey can sell but not before they get the stuff!

    take a look at the US debt bud, it is exploding...over 1 Trillion a year in the Hole... ya printing press economy and dollar is weakening faster now!

  2. Guess we're going to get some Democratic regime change in Turkey.

  3. That economic superpower Turkey is going to influence world trade terms. Well they do sell a lot of coffee and hookahs in Paterson.

  4. Whichever countries come latest to the "repatriation of gold" game will discover the degree to which "fractional reserve banking" theory has been applied to gold holdings.

    "Aaaand ........ it's gone!"