(Kitco News) - Turkey is back to adding gold to its reserves after a three-month selling spree, the World Gold Council (WGC) reported.
The central bank of Turkey increased its reserves by 11 tonnes in June, said WGC's senior analyst Krishan Gopaul.
"Official gold reserves (CB + treasury) increased by 11 tonnes during the month, lifting total official gold reserves now total 440 tonnes," Gopaul said in a tweet last week.
This comes after Turkey sold 159 tonnes in the previous three months, which dropped the country's official gold reserves to 428 tonnes.
"Since March, the central bank has sold nearly 160 tonnes, equivalent to its cumulative purchases over the preceding 12 months," Gopaul wrote in a report.
The selling spree was in response to local market dynamics — "very strong gold demand and a temporary partial ban on gold bullion imports rather than a change to their long-term gold policy," the WGC noted.
In February, Turkey introduced steps to curb surging gold imports to improve the deficit situation in the country after rising gold demand triggered a jump in gold imports, which weighed heavily on Turkey's current-account deficit.
Turkey's massive gold sales even moved the central banks' data, with global official gold reserves falling by 27 tonnes in May.
Last year, when global central banks purchased a record 1,078 tonnes of gold, Turkey was the biggest gold buyer. Its official gold reserves rose by 148 tonnes to 542 tonnes last year, marking the highest level on record.
Turkey's domestic market has seen a surge in gold demand in the past year as citizens embraced the precious metal as a hedge against inflation and local currency devaluation. At one point last year, inflation was running at over 85%.
Other central bank gold activity in June
The People's Bank of China was the big buyer in June, adding 21 tonnes to its reserves. This was China's eighth consecutive month of buying gold, totaling 165 tonnes. The latest purchase boosted the country's reserves to 2,113 tonnes, Gopaul said.
Poland also stood out in June, as its central bank acquired around 13 tonnes of gold last month, bringing its total reserves to about 276 tonnes, the WGC reported.
The Czech National Bank bought around three tonnes of gold in June, marking the fourth consecutive month of buying, with year-to-date purchases standing at approximately eight tonnes.
The Central Bank of the Republic of Uzbekistan also added eight tonnes to its reserves in June, marking its first monthly purchase since February, the WGC said.
