Saudi Arabia deposits $5 billion in Turkey's central bank
March 6, 2023
Saudi Arabia signed an agreement with Turkey on Monday to deposit $5 billion (€4.7 billion) in the country's central bank.
It comes as Turkey is struggling with high inflation and the effects of last month's massive earthquake.
What Saudi Arabia said about the deal with Turkey
The kingdom announced the deal through the state-run Saudi Press Agency, calling it "a testament to the close cooperation and historical ties that exist between the kingdom of Saudi Arabia and the Republic of Turkey and its brotherly people."
The decision was made on the order of King Salman and Crown Prince Mohammed bin Salman it said.
The kingdom gave no details on how the cash would be used or if it could call for the amount to be returned. Deposits of this nature can help increase a national currency's exchange rates against other international currencies.
In December of last year, Minister of Finance Mohammed Bin Abdullah Al-Jadaan had announced his country's intention to make the deposit.
Strenghtening relations between Saudi Arabia and Turkey
The move symbolizes a rapprochement between Saudi Arabia and Turkey after the relationship suffered a heavy blow following the 2018 killing of Saudi journalist Jamal Khashoggi in the kingdom's Istanbul consulate.
Last April, Turkish President Recep Tayyip Erdogan paid his first visit to Saudi Arabia since the Khashoggi killing, where he met Prince Mohammed before traveling to Mecca.
Prince Mohammed followed with a visit to Ankara in June.
los/rt (AP, Reuters, AFP)