In an official statement, Saudi Arabia’s Ministry of Finance announced on Tuesday that it will make a deposit worth five billion U.S. dollars at Turkey’s central bank.
The central bank of Turkey is in final discussions with us about making a USD 5 billion deposit, the Saudi spokesperson told Reuters.
The Turkish Central Bank did not respond to requests for comment on the matter. A Turkish official said that talks are nearly completed with Saudi Arabia about a potential swap or deposit agreement.
Swaps or deposits could restore Turkish foreign currency reserves that have been diminished by a slumping Lira and soaring inflation of over 85%.
Some analysts think this decision could also make Erdogan’s elections look more favorable in his election campaign by June 2023.
It is pertinent to mention here that Turkey has swapped nearly $28 billion with other central banks in various currencies.
As per the details, China signed a $6 billion deal, Qatar signed one for $15 billion, and the UAE signed one for $5 billion.
The momentum of these talks came after a joint Turkish-Saudi effort to restore ties which had been broken in 2018 following the murder of journalist Jamal Khashoggi.