Turkey's central bank has spent $30 billion defending the lira as foreign outflows accelerate amid the Iran conflict, raising fears it may need to tap gold reserves to maintain currency stability. The rapid depletion of foreign reserves since late February mirrors the financial turmoil following Istanbul mayor Ekrem İmamoğlu's arrest last year, when the central bank burned through similar amounts to prop up the currency.

With net reserves falling to $43.4 billion and energy prices surging above $100 per barrel, Turkey faces mounting pressure on its current account deficit and inflation rate. Finance Minister Mehmet Şimşek acknowledged the war's impact, warning that Turkey cannot remain unaffected by regional instability. The central bank holds over $100 billion in gold, including $30 billion stored at the Bank of England, which could be mobilized without logistical constraints.

Despite Turkey's economic reforms under Finance Minister Mehmet Şimşek and central bank governor Fatih Karahan, which reduced inflation from 85% to 30%, the current crisis threatens to undo years of progress. Energy costs and potential refugee flows from Iran could further strain Erdoğan's government ahead of the 2028 election, where polls show his party trailing the opposition. The central bank has so far resisted raising interest rates, but analysts warn that continued reserve depletion may force a policy reversal.