Turkey Sold Nearly All U.S. Treasuries in March to Support Lira

U.S. 8 billion by the end of March from $16 billion the previous month. The sales formed part of efforts to support the lira amid higher energy costs and market outflows. U.S. Treasury data, the figure includes securities held by the central bank and other Turkish entities. The decline coincided with a selloff in Turkish markets after the Middle East conflict erupted.

4 billion in March, the largest monthly decline on record. 3 billion in February. Turkish central bank Governor Fatih Karahan said last week that the ratio between the current-account deficit and gross domestic product would be below historical averages this year.

He also acknowledged upside risks to the outlook. Istanbul-based economist Haluk Burumcekci said international institutions have raised average oil price forecasts for 2026 and that supply disruptions and regional tensions keep upward risks alive in year-end projections.

The central bank tightened funding conditions and sold foreign exchange and gold assets to prevent a crash in the lira. It also swapped gold from reserves. 75 percent. 4 percent, prompting the central bank to raise its year-end inflation target to 24 percent from 16 percent. The lira has remained under pressure as the conflict continues. 6 against the dollar last week.