‘Saudi Arabia in final stage for $5B deposit in Türkiye’s central bank’

SAUDI Arabia and Türkiye are discussing a $5 billion deposit at the Central Bank of the Republic of Türkiye (CBRT), a Saudi Ministry of Finance spokesperson said yesterday.

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

Türkiye’s Treasury and Finance Ministry later confirmed that Saudi Arabia has reached the final stage in its $5 billion deposit account with the CBRT, according to a Bloomberg report.

Last week, President Recep Tayyip Erdoğan met with Saudi Crown Prince Mohammed bin Salman (MBS) as part of the G-20 Leaders’ Summit in Bali.

Foreign Minister Mevlüt Çavuşoğlu, Treasury and Finance Minister Nureddin Nebati, Agriculture and Forestry Minister Vahit Kirişci, Presidential Communications Director Fahrettin Altun and Presidency Spokesperson Ibrahim Kalın also attended the meeting.

The CBRT has previously sought swap deals with other countries as a source of hard currency to build reserves and support the Turkish lira.

It has swap agreements with China, Qatar and South Korea.

Relations between Türkiye and Saudi Arabia deteriorated in the past decade, but both countries are now seeking to revive ties. Saudi crown prince visited Türkiye for the first time in years this year for talks with President Erdoğan as the two countries aim to normalize their relations following several tumultuous years.

According to a joint declaration, the leaders emphasized the countries’ determination to start a new era of comprehensive cooperation in many areas. Ankara and Riyadh decided to deepen consultation and cooperation in regional issues to strengthen stability and peace.

The two leaders vowed to develop and maintain cooperation on the basis of the “historical brotherhood” of the two nations for the future of the region. They also highlighted the importance of easing bilateral trade and exploring investment opportunities.

Erdoğan in April visited the kingdom in the first high-level visit in years, which followed intense efforts in recent months to repair some diplomatic damage after a decade of tension.

Following his trip to Saudi Arabia that came upon Saudi King Salman’s invitation, Erdoğan said Ankara and Riyadh were striving to increase all kinds of political, military and economic relations to “start a new era.”