world-economy

Turkey Dumps Treasury Holdings as Currency Pressures Mount

Turkey liquidated nearly all of its U.S. Treasury holdings in March as the nation moved to shore up the lira amid regional geopolitical tensions, according to Federal Reserve custody data.

The country's foreign reserves experienced their steepest monthly decline on record during the same period, as emerging market assets faced broad selling pressure and the Iran conflict roiled global markets.

Turkey's aggressive Treasury offloading reflects a wider pattern among central banks reassessing reserve positions. Japan similarly faced currency pressures in March, with market participants debating whether it offloaded U.S. debt holdings to defend the yen.

The reserve movements underscored mounting currency volatility across major economies. Policymakers showed growing caution regarding exposure to dollar-denominated assets, prioritizing direct currency intervention over maintaining traditional reserve portfolios.