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Saudi Arabia is close to depositing $5bn in Turkiye Central Bank

November 23, 2022 at 9:40 am

The entrance sign of building housing the Turkish Central Bank [Diego Cupolo/NurPhoto via Getty Images]

Saudi Arabia is in discussions with Turkiye to deposit $5 billion in the Turkish Central Bank, Reuters reported a spokesman of the Ministry of Finance in Riyadh as saying on Tuesday.

“We are in final discussion to make a $5bn deposit with the Central Bank of Turkiye,” the spokesman said in an emailed response to Reuters.

A Turkish official said that discussions are at the final stage with Saudi Arabia over a swap or deposit agreement. However, the Central Bank declined to comment on the issue.

Such a deposit could boost the falling value of the Turkish lira and help support the economy, which has been witnessing a record level of inflation. Analysts said that this could also help President Recep Tayyip Erdogan shore up support ahead of elections due by June next year.

READ: Saudi-Turkiye trade grows 73.7% in June

Turkiye’s Central Bank has swap deals in local currencies with several of its counterparts worth a total of $28 billion, explained Reuters. It signed a similar deal with China for $6bn, with Qatar for $15bn, and with the UAE for around $5bn.

The talks with Saudi Arabia follow the joint efforts of Ankara and Riyadh to mend ties that were ruptured after the 2018 murder of Saudi journalist Jamal Khashoggi in the Saudi Consulate in Istanbul.