Türkiye is planning to impose a quota on the imports of unprocessed gold as it seeks to curb the negative impact of such imports on the current account balance and encourage domestic production and exports, reports said Monday.
The move would mark the latest in a series of measures the Treasury and Finance Ministry has been after to address the adverse effects of the increase in raw gold imports on foreign trade and the balance of payments.
The ministry officials have been engaged in discussions with relevant institutions and sector representatives to diminish the negative effect, seeking a long-term and solution-oriented approach, Anadolu Agency (AA) reported on Monday.
The Treasury and Finance Ministry has decided to introduce the quota in a bid to not only relieve the deficit but also to boost Türkiye’s foreign exchange reserves, AA reported.
It reported legislative work on the measure would be completed soon by the Treasury and Finance Ministry and the Trade Ministry.
The quotas will apply to the import of raw gold carried out by members of Borsa Istanbul Stock Exchange engaged in precious metal brokerage, according to the report.
As part of the measures, a monthly quota amount has been determined, taking into consideration the import quantities of previous years for raw gold imports conducted by brokerage firms. The quota will be allocated considering the imports and exchange transactions of precious metal brokerage firms.
The measure is expected to help narrow the foreign trade deficit. Meanwhile, imports under the Inward Processing Regime (IPR) will be exempt from the application. The approach is envisioned to stimulate gold production and trade and help generate long-term solutions to the current account deficit.
In addition to imports under the IPR, gold brought in as export value within the scope of duty-free export or the gold brought in the country as capital will also be exempt from the quota.
Türkiye’s gold imports rose 5.1% year-over-year to nearly $217.1 billion (TL 5.86 trillion) from January through June this year. The imports of unprocessed gold soared by 180% on an annual basis to $19.4 billion, according to the Trade Ministry data.
