Turkey, one of the world’s largest precious metals consumers, is planning to loosen rules governing the importation of gold. The country’s Treasury plans to allow the certification and standardization of scrap or unregistered gold people may carry when entering Turkey. The plan also includes the registration of gold brought without certification from the London Bullion Market Association, according to unnamed sources.
The LBMA, an international trade association that has set the standard for the global over-the-counter precious metal market in terms of purity and provenance to how the bars are traded. LBMA affiliate Borsa Istanbul, Turkey’s lone stock exchange, has been overseeing the market for precious metals since 2013.
Turkey only mines a fraction of the gold needed to meet its domestic demand, hence the efforts to attract more gold from abroad. Turks give gold as gifts at events, including weddings, circumcision ceremonies. Turkey’s gold demand increased 3.7% over the first nine months of 2019.
Turkey’s Istanbul Gold Exchange in 1993 helped local prices move in tandem with international benchmarks. That also imposed international standards on imported bars in terms of fineness. The exchange, abolished later after the establishment of the Precious Metals and Diamond market in 2012 under the Borsa Istanbul.