Türkiye pours billions into US Treasury securities, holdings surge over 300%

Türkiye significantly expanded its holdings of U.S. Treasury securities in early 2025, with the total amount held by Turkish investors surpassing the $20 billion mark in February, according to official figures.

When compared to the same period in 2024, when only $1.74 billion in treasuries had been purchased—indicating a 338% increase in early 2025.

The country added $2.26 billion in February alone, following a substantial $5.36 billion increase in January. This surge reflects a continuing strategy from 2024, when Türkiye made its largest-ever monthly purchase of U.S. Treasuries in October—$5.67 billion. The trend suggests a deliberate move to rebalance foreign reserves by acquiring high-credit, dollar-denominated assets amid global uncertainties.

Türkiye favors long-term investments

Türkiye’s U.S. Treasury holdings stood at $12.85 billion at the end of December 2024. With the combined January–February acquisitions in 2025 totaling $7.62 billion, the country’s portfolio expanded by roughly 59% in just two months.

As of February 2025, 37.3% of the Turkish investors’ Treasury portfolio consists of short-term securities, totaling $7.63 billion, while 62.7% is allocated to long-term bonds, worth $12.84 billion.

This ratio suggests a moderately balanced approach, with a preference for longer-duration assets likely aimed at locking in yield stability while retaining some short-term liquidity flexibility.

Türkiye’s purchases accelerated in 2024, with total acquisitions reaching $10.7 billion, peaking in October. These purchases brought the year-end total to $12.85 billion, laying the groundwork for the aggressive investment posture seen in early 2025.

The consistent accumulation of U.S. Treasuries underscores Turkish investors’ strategy to hedge against market volatility and maintain exposure to high-credit, dollar-denominated assets, in line with broader disinflation efforts.