As the world grapples with U.S. tariffs and geopolitical uncertainty, countries are scrambling to repatriate their gold reserves in search of alternatives to the dollar.
Türkiye took this step in 2018. During Berat Albayrak’s tenure, gold reserves held in the U.S., the U.K. and Switzerland were brought back to the Central Bank of the Republic of Türkiye (CBRT).
U.S. tariffs, inflationary pressures, geopolitical uncertainties, market volatility and the dollar experiencing its worst first half since 1973 have alarmed many countries worldwide.
European central banks, in particular, have started to not only increase their gold reserves but also discuss repatriating gold stored in the U.S. and U.K. Governments in Germany and Italy are planning to bring back reserves held in New York.
According to the World Gold Council, Germany and Italy rank among the top countries with the largest gold reserves after the U.S., holding 3,352 tons and 2,452 tons, respectively. More than a third of their bullion is stored in the U.S. The market value of gold stored in the U.S. is reported to exceed $245 billion.
There has been growing pressure on EU countries to repatriate or at least audit their physical gold reserves held in the U.S. The Taxpayers Association of Europe (TAE) previously stated that gold reserves of EU countries should be returned from the U.S. to Europe.
In addition to Germany and Italy, some of the world’s largest gold holders, such as France, China, Switzerland and India, also store gold in the U.S. and the U.K. In 2024, India repatriated gold held in London.
Central banks, wary of sanctions, are seeking alternatives to the dollar and also aiming to increase their gold holdings.
According to the Official Monetary and Financial Institutions Forum (OMFIF), central bank gold reserves, which peaked at 38,000 tons during the Bretton Woods era (1945-1971), reached 36,000 tons in 2024. These reserves are expected to surpass the historical 1965 peak, hitting 38,300 tons by 2026.
A different debate is underway in the U.S., where many countries store their gold. Fort Knox in Kentucky, a facility used to safeguard foreign nations' valuable assets during times of war, holds gold reserves. According to the U.S. Mint, it contains 147.3 million ounces of gold.
There have been public criticisms over a "lack of transparency" regarding Fort Knox, with claims ranging from "the gold is safely stored" to "some has been secretly sold." U.S. Treasury Secretary Scott Bessent responded to these speculations by saying, "We conduct audits every year. All the gold is there."
While European countries are now reopening the debate on gold reserves, Türkiye took action much earlier. To shield the economy from global shocks, during Berat Albayrak’s term as the Minister of Treasury and Finance, gold held in countries like the U.S., Switzerland, and the U.K. was gradually transferred to the central bank’s vaults.
In 2002, 90% of Türkiye’s 120 tons of gold were held in foreign countries such as the U.K., U.S. and Switzerland. Strategic steps taken in 2017 not only increased reserves but also began the repatriation of gold into the CBRT’s possession. Gold stored at the U.S. Federal Reserve (Fed) dropped from 28.7 tons in 2016 to zero in 2017.
All 18.7 tons of gold held at the Bank for International Settlements (BIS) in Switzerland were brought back. Around 350 tons of gold stored in the U.S., Switzerland and the U.K. were repatriated to Türkiye during that period. At the end of 2018, gold reserves stood at 488.9 tons, rising to 719.2 tons by 2020.
At a time when the world is on the brink of a new cold war, this move has strengthened the CBRT’s hand. According to CBRT’s weekly monetary and banking statistics, gross foreign exchange reserves stood at $155.7 billion in the week of June 20.
Gold reserves during the same period amounted to $85.1 billion. In 2018, gold reserves were at $19.9 billion, while gross foreign exchange reserves were $71.9 billion. As a result of these measures, gold reserves have now surpassed gross foreign exchange reserves, reaching $85.1 billion compared to $70.7 billion.
