Turkish Central Bank Governor Fatih Karahan (AA Photo)
Central banks’ demand for gold remains strong as geopolitical risks reshape reserve management, Turkish Central Bank Governor Fatih Karahan said on Sept. 16.
Speaking at the Budapest Financial Summit, he said reserve managers needed to consider access to assets alongside safety, liquidity and returns.
Assets that were liquid under normal conditions might not be readily available during periods of stress.
Karahan said central banks were reassessing gold’s role, but this did not mean the end of the U.S. dollar’s dominance.
The dollar still accounted for a large share of foreign exchange reserves, supported by deep and liquid markets.
He called for diversification and contingency planning, saying the key question was how much of a country’s reserves could be used during a crisis.
Gold had long held an important place in Türkiye’s financial system and household savings, he added.
Karahan also warned that geopolitical rivalry could expose central banks to larger and longer-lasting economic shocks, affecting inflation expectations and decisions on wages and prices.
