The Ministry of Treasury and Finance has declared that the imposition of a monthly quota on unprocessed gold imports since August last year has significantly contributed to mitigating the current account deficit.
According to the ministry, the existing regulations enforce a monthly limit of 12 tons on unprocessed gold imports.
In the first two months of 2024, the import of unprocessed gold saw a substantial decline, plummeting by $6.8 billion compared to the corresponding period of the previous year, settling at $2.1 billion. Additionally, the volume of gold imports witnessed a notable decrease, plummeting by 77.9 percent to 33.1 tons, as highlighted in the ministry’s statement.
As of February, the 12-month rolling current account deficit stood at $31.8 billion, the ministry added.
“The observed trend suggests a positive trajectory for the current account balance in the foreseeable future, with the gold trade balance poised to further reinforce this optimistic outlook,” remarked the ministry.
Since the introduction of the quota in August until the conclusion of 2023, unprocessed gold imports have experienced a significant downturn, plummeting by $3.2 billion to $10.3 billion. Concurrently, import quantities declined by 32.7 percent to 169.6 tons compared to the previous year, according to official data provided by the ministry.
Highlighting the stark fluctuations in gold import statistics, the ministry underscored that Türkiye experienced a surge of over 200 percent in unprocessed gold imports in 2022, reaching 379.2 tons valued at $20.4 billion. However, this trend reversed in the first seven months of 2023, with imports stabilizing around 320 tons, equivalent to $19.2 billion.
In terms of economic impact, net gold imports played a significant role in Türkiye’s current account deficit. In 2022, they accounted for $19.4 billion, representing 39 percent of the total deficit of $49.1 billion. Similarly, in the first seven months of the following year, the current account deficit stood at $42.3 billion, with net gold imports comprising $17.7 billion, constituting 42 percent of the deficit, according to ministry data.