Turks’ hard currencies at new record

ANKARA: Turkish locals’ forex and precious metals holdings rose to a new record of $235.66 billion as of Dec. 31, according to central bank data on Thursday that reflected worries over double-digit inflation.

The holdings stood at $234.81 billion the previous week.

Data also showed foreign investors bought $35.1 million worth of Turkish government bonds in the week to Dec. 31, as well as $93.7 million worth of stocks.

President Tayyip Erdogan’s pledge in November of economic reforms led foreigners to snatch up Turkish assets but locals have remained wary, continuing to buy hard currencies and gold as a hedge against inflation of nearly 15%.

Turkey imported $26.6 billion worth of gold in 2020, double that of a year earlier. Energy Minister Fatih Donmez said on Thursday Turkey had locally produced 42 tonnes of gold in 2020, adding that it would go up to 100 tonnes in coming years.

Separately, data showed the central bank’s gross forex reserves fell to $50.0 billion in the same week period, from $51.61 billion a week earlier.