Saudi Arabia says it is close to making $5 billion deposit with Turkey

Published: Updated:
Enable Read mode
100% Font Size

Saudi Arabia and Turkey are discussing Riyadh placing a $5 billion deposit at Turkey’s central bank, a Saudi Ministry of Finance spokesperson said on Tuesday.

“We are in final discussion to make a USD 5 billion deposit with the central bank of (Turkey),” the spokesperson said in an emailed response to a Reuters query.

For the latest headlines, follow our Google News channel online or via the app.

The Turkish central bank declined to comment on the issue. A Turkish official with the knowledge of the matter said discussions are at the final stage with Saudi Arabia over a swap or deposit agreement.

Turkey’s economy has been badly strained by a slumping lira and soaring inflation of over 85 percent and a swap or deposit agreement could boost Turkey’s diminished foreign currency reserves.

Analysts say this could also help President Recep Tayyip Erdogan shore up support ahead of elections due by June 2023.

Turkey’s central bank has swap deals in local currencies with several of its counterparts worth a total of $28 billion. It signed a deal with China for $6 billion, with Qatar for $15 billion, with the United Arab Emirates for around $5 billion.

The momentum of talks between the countries’ central banks comes after Ankara and Riyadh’s joint effort to mend ties that were ruptured in 2018.

Read more:

Turkey’s Erdogan shakes hands with Egypt’s Sisi at World Cup

Saudi Crown Prince Mohammed bin Salman receives Turkish officials in Jeddah

Top Content Trending