ANKARA (Realist English). As the Financial Times reports, citing data from consultancy Metals Focus, the Central Bank of the Republic of Turkey (CBRT) sold 52 tons of gold between February 27 and March 27, 2026. Another 79 tons were placed in gold swaps — operations in which the bank leases out bullion to generate income while increasing market supply, putting downward pressure on prices.
According to FT calculations, the combined value of sales and swaps at current prices is nearly $20 billion. Turkey’s net central bank gold reserves fell to 440 tons, their lowest level in more than two years.
Why Turkey is selling gold
Ugur Gürses, a Turkish economic commentator who once worked in the bank’s gold reserve management department, notes that 60–70% of the country’s reserves were held in gold. Amid the energy shock and the collapse of the lira, the central bank needed dollar liquidity. “If 50 tonnes enters the gold market, that can have a huge effect on prices,” Gürses said. He believes the CBRT has now obtained sufficient liquidity and has no immediate need to sell more gold. Turkey’s net international reserves have fallen by almost half — to $46 billion — since the Iran war began, according to calculations by Bürümcekçi Research and Consulting.
Gold crash — worst since 2008
Gold prices fell 11.5% in March 2026, the steepest monthly drop in 18 years. Gold is traditionally seen as a safe-haven asset and an inflation hedge, but this time the geopolitical crisis in the Middle East triggered an unexpected sell-off. “Central bank sales are the dominant driver of the $1,000 price fall over the past few weeks,” said Nicky Shiels, analyst at refiner MKS Pamp. “The market has always assumed that central banks have been the backstop. But the recent data flows and official statements are sort of refuting that.”
Not just Turkey: Russia sells, Poland proposes
According to the World Gold Council (WGC), central banks’ net gold purchases in 2025 were about 860 tonnes, a 20% decline from the previous year. In 2026, the trend has intensified. Russia sold 15 tons of gold in January and February.
The head of Poland’s central bank recently proposed selling some of its gold reserves to raise funds for defense, though the government has opposed the plan. Analysts expect India and Central Asian nations heavily dependent on energy imports could also become sellers.
China buys the dip
Not all central banks are selling. The People’s Bank of China bought 160,000 troy ounces in March, its largest reported purchase in more than a year. Shaokai Fan, head of Asia Pacific at the World Gold Council, said China’s accelerated buying could reflect a desire to take advantage of lower prices. “We are seeing central banks take both sides in this movement of the gold price right now,” Fan said. “The interest in gold among central banks has increased in the last few months — but it cuts both ways.”
Summary: gold is no longer a safe haven?
Ending the quarter, gold has retreated to around $4,650 per troy ounce. While some countries are selling reserves to rescue their currencies and budgets, others — particularly China — are building up reserves at lower prices. At the same time, a growing number of central banks are choosing to repatriate their gold: France last week announced it had completed a years-long repatriation program and no longer holds any gold in the United States.
