The most important reason behind the significant increase in Turkey’s golden bullion export is Iran, said Turkish Deputy Prime Minister Ali Babacan in a parliamentary session late Nov. 23.
Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases from the Islamic republic, the deputy prime minister said. U.S. dollars are unable to be transferred into the country due to international restrictions and U.S. sanctions.
“As Iran could not transfer the payment to [its own banks] in foreign exchange, the country buys gold with Turkish lira, and then takes the gold to its country. I do not know how Iran transports the gold, but this is the root of the matter. The gold export to Iran in reality becomes payment for the natural gas we buy from Iran,” Reuters quoted Babacan as having said.
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