Turkey sells $14 bn of US Treasuries to shore up lira amid Iran‑related economic pressure

In March, Turkey off‑loaded almost all of its US Treasury holdings, selling roughly $14 billion and reducing its portfolio to about $1.6 billion. The liquidation was driven by severe economic strain linked to the US‑Israeli conflict with Iran, which halted Iranian gas imports and pushed global energy prices higher. Higher oil and gas costs have increased Turkey’s import bills and raised borrowing costs as US Treasury yields rose. By converting US‑dollar assets into local currency, the government aimed to support a lira that has been sliding against the dollar since the war began.

The move underscores Turkey’s vulnerability to external shocks and could modestly influence US Treasury yields, though the country remains a relatively small holder compared with regional peers such as Saudi Arabia and the UAE.