Informed sources: Turkey is considering using its $135 billion gold reserve to support the lira exchange rate.

According to informed sources, the Central Bank of Turkey is preparing to expand its policy tools to counter the exchange rate fluctuations brought about by the Iran-related conflict, including the possible use of the country's large gold reserves. The sources stated that the bank has discussed conducting gold-for-forex swap transactions in the London market. Since the discussions have not been made public, these sources requested anonymity. The Central Bank of Turkey refused to comment. Over the past decade, Turkey's leadership has been seeking to reduce its exposure to US dollar assets, making it one of the most aggressive gold-buying countries in the world. Bloomberg compilation data shows that as of early March, Turkey's monetary authorities held approximately $135 billion in gold reserves.