Turkey's central bank is weighing emergency measures to defend the lira against mounting volatility triggered by the war with Iran, including tapping into its vast gold reserves through swap transactions in the London market, according to people familiar with the deliberations
The bank has held internal discussions about conducting gold-for-foreign currency swaps, a move that would allow it to mobilise hard currency without directly selling its gold holdings Turkey is estimated to hold around $30 billion of its reserves at the Bank of England — assets that a JPMorgan economist said the central bank "may decide to use for FX intervention purposes without logistical constraints
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Source and Credit: mining.com
