world-economy

Turkey Dumps Treasury Holdings to Shore Up Battered Lira

Turkey liquidated nearly its entire portfolio of US Treasury securities in March as policymakers deployed emergency measures to stabilize the lira. Regional geopolitical tensions and surging energy costs created intense currency pressure and threatened to accelerate inflation. The central bank's foreign reserves contracted at a record monthly pace in March as the government intervened repeatedly in currency markets. State lenders executed significant foreign exchange sales to support the lira, including roughly $6 billion in a single Thursday intervention. Turkish monetary authorities raised inflation forecasts significantly due to soaring energy prices but refrained from signaling policy adjustments. The Treasury selloff reflected emerging market volatility in March, as overseas investors reassessed holdings across the sector amid global financial turbulence.