Turkey bought 23 tonnes of gold in January, making it the biggest buyer of the precious metal among central banks globally over the period.

The country now holds 565 tonnes of gold, the highest level on record, according to data from the World Gold Council.

In total, central banks around the world added a net 31 tonnes of gold to their reserves in January, increasing their purchases by 16% from December. The People’s Bank of China and National Bank of Kazakhstan were the second and third biggest acquirers of the commodity, adding 15 tonnes and 4 tonnes, respectively. 

Gold as Inflationary Hedge Makes Turkey World’s Biggest Buyer

Turkey has been accumulating gold for some months and was the biggest buyer of the metal among monetary authorities last year. Gold is also a popular commodity among Turkish households who use it as a hedge against currency and inflation pressures.

Last month, Turkey temporarily suspended some gold imports as part of an emergency plan to mitigate the economic fallout from the devastating earthquakes. The government is also trying to limit gold imports, which are seen as the biggest threat to deteriorating external finances. 

SOURCE: BLOOMBERG