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Türkiye has brought 577.4 tonnes of physical gold, valued at ₺669.9 billion ($16.4 billion), into the formal financial system since 2017 through government-backed instruments, according to Treasury and Finance Minister Mehmet Simsek.
Simsek’s remarks came in response to a parliamentary inquiry that asked how much gold is estimated to be held “under the pillow” — meaning outside the financial system and kept as physical holdings by individual investors — and requested an explanation of the government’s efforts to bring these assets into the system.
Since the first issuance in 2017, the Treasury has sold gold bonds and gold-backed lease certificates to individual investors, later expanding access to institutional investors in 2019 to broaden the investor base and diversify investment instruments, Simsek said, according to Turkish news outlet milliyet.com. The offerings are designed to channel privately held gold into the financial system while providing returns indexed to gold prices, he added.
Simsek noted that Türkiye’s financing needs are met “through borrowing strategies based on strategic benchmarks, at the lowest possible cost over the medium and long term, within a reasonable level of risk.”
Linking the program to broader fiscal policy, Simsek said the implementation has strengthened the structure of public debt, noting that the EU-defined public debt-to-GDP ratio stood at 25.3% in the first quarter of 2025.
Figures provided by Simsek show that the amount registered in the financial system through government-backed instruments such as gold bonds and gold-backed lease certificates nearly matches the Central Bank of the Republic of Türkiye’s (CBRT) gold reserves, which stood at 767 tonnes in 2024.
However, the larger, unseen portion remains, as the Central Bank of Türkiye estimates that household “under-the-pillow” holdings amounted to approximately $311 billion in 2024. The World Gold Council (WGC) also estimates that Türkiye’s total gold holdings exceed 4,500 tonnes, with most still held by households.
Meanwhile, the total amount of gold deposits held in Turkish banks stood at ₺2.04 trillion ($50.26 billion) in June, according to the Banking Regulation and Supervision Agency (BRSA) data.
The reasons for this range from cultural habits to financial preferences, as Türkiye is the world’s fourth-largest importer of gold for jewelry, according to the World Gold Council, while in recent years demand for gold coins has outpaced jewelry purchases amid soaring inflation.
According to information published by the Treasury and Finance Ministry, gold bonds and gold-backed lease certificates were first introduced in 2017 for individual investors. In 2019, issuance was extended to institutional investors to diversify investment instruments and expand the investor base.
Gold-backed lease certificates allow investors to earn returns indexed to gold prices without paying interest, with yields generated from leasing underlying assets. Gold bonds, similar to other government bonds, provide interest income in Turkish lira indexed to gold prices without being tied to real estate transactions.
Türkiye also accelerated its efforts in 2022, when the Treasury and Finance Ministry launched the Gold Conversion System, enabling citizens to deposit gold at contracted jewelers for secure transfer into the financial system. The deposits can be converted into gold-backed bank accounts or certificates, helping preserve savings while drawing unregistered gold into the formal economy.
That same year, Türkiye’s equity market, Borsa Istanbul, introduced a platform allowing investors to trade gold certificates backed by physical reserves.
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