Two state-run lenders authorized to import gold

ANKARA

The Treasury and Finance Ministry has announced that state-run lenders Ziraat Bankası and Vakıf Katılım Bankası have been allowed to import raw gold.

In a statement issued on March 27, the ministry noted that quotas on the amount of imported raw gold were introduced in August last year in order to curb the pace of growth in gold imports, which had an adverse impact on foreign trade and the current account balance.

The ministry noted that it has received complaints that the supply of raw gold in the market declined after the quota system was introduced.

“In order to address this problem, raw gold import quotas were allocated to Ziraat Bankası and Vakıf Katılım Bankası starting in April to meet the needs of jewelry businesses, which are authorized by the Trade Ministry,” the statement explained.

The authorized jewelry businesses should inform the lenders within the first three business days of the month regarding the amount of gold they demand, according to the statement.

Türkiye’s gold imports rose from 264,839 kilograms in 2022 to 318,979 kilograms last year, according to data from the Borsa Istanbul Precious Metals Market.

In the first two months of 2024, the country’s gold imports amounted to 22,739 kilograms.

According to the latest foreign trade data from the Turkish Statistical Institute (TÜİK), Türkiye spent $1.3 billion on the import of precious stones and precious metals, down 75 percent from a year ago.

In February, the export/import coverage ratio was 75.1 percent, according to the preliminary foreign trade data by the Trade Ministry.

However, when energy and gold imports were excluded, the coverage ratio was 93.3 percent.