Turkey deployed $12 billion from its foreign reserves to stabilize the lira during market turbulence triggered by the Iran war. The central bank tightened liquidity conditions while lenders sold dollars, with interventions decreasing throughout the week. This approach kept the lira relatively stable as other emerging-market currencies tumbled during global volatility.

The defense consumed approximately 15% of Turkey's foreign-currency reserves, which stood at $78.4 billion last Friday. Combined with gold holdings, the central bank commands roughly $200 billion in total resources. JPMorgan Chase's Nick Eisinger views the policy as sustainable for now, though its longevity depends on how geopolitical tensions evolve.

The lira has emerged as one of the best-performing emerging-market currencies this week, declining just 0.1% against the dollar. Goldman Sachs analysts note the central bank has adequate reserves to continue interventions for now, but the stance would become "less sustainable" if shocks persist. Turkey's vulnerability stems from its proximity to Iran and reliance on energy imports, with crude prices jumping 16% since the conflict began.