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Turkiye seeks $20bn deposit from Saudi Arabia

August 11, 2022 at 9:18 am

Turkish President Recep Tayyip Erdogan (R) and Crown Prince of Saudi Arabia Mohammed bin Salman in Ankara, Turkiye on 22 June 2022 [TUR Presidency/Murat Cetinmuhurdar/Anadolu Agency]

Turkiye is expecting Saudi Arabia to deposit up to $20 billion into Turkish treasury bonds and accounts in an effort to boost the economically-struggling country’s foreign currency reserves, media reports have stated.

According to the Turkish newspaper Dunya, which cited sources in the country’s treasury, Saudi Arabia may be set to deposit an initial investment of $10 billion into the treasury’s bonds and accounts. The London-based news outlet Middle East Eye confirmed the reports, with a source reportedly telling it that talks are ensuing to attempt to secure a $20 billion deposit from the kingdom.

The possible Saudi investment comes almost two months after Saudi Crown Prince Mohammed Bin Salman made a landmark trip to Ankara, where he met Turkish President Recep Tayyip Erdogan.

The visit marked a reconciliation in relations between the two countries, a reconciliation which cost Turkiye the dropping of the investigation into the kingdom’s killing of Saudi journalist Jamal Khashoggi in October 2018 at the Saudi consulate in Istanbul.

READ: Did Turkey bow down to Saudi Arabia?

During the crown prince’s trip, a joint declaration was made which announced Riyadh and Ankara’s intention to improve ties in the trade, energy and defence sectors, along with political and regional cooperation.

The potential Saudi investment move comes after Turkish Finance Minister Nureddin Nebati told reporters earlier this month that rising energy prices had largely caused Turkiye’s increasing current account deficit, resulting in the need for a further $30-$35 billion in order to finance it.

Nebati also mentioned that the Turkish government is seeking assistance from countries such as Saudi Arabia and Russia, the latter of which is currently transferring $20 billion to Turkiye for the Akkuyu nuclear power plant which is being constructed in the south of the country – $7 billion of which has already been sent.

In Turkiye’s attempt to battle its high inflation rate – which has already reached almost 80 per cent – it has also previously struck deals for a $10 billion investment from the United Arab Emirates (UAE) following their reconciliation last year.

READ: What did Turkiye gain from normalising its regional relations?