The Turkish Central Bank today doubled the amount of reserves lenders are allowed to hold in gold, from 10% to 20%. Combined with last week's announcement that Turkey is encouraging private citizens to store their personal gold holdings in the Turkish Central Bank, it is clear that Turkey has a slightly different view on 'tradition' than does our esteemed Federal Reserve Chairman. Whether it is the yuan, renminbi, or gold, an increasing global shift in reserve currencies other than the US dollar means the days are numbered and coming to and end for the US dollar's role as a reserve currency.
Turkey's central bank Tuesday doubled the amount of lira reserve requirements lenders could hold in gold, in a technical move that could give breathing space to banks as Ankara moved to tighten rates to shore up the lira.
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