Riyadh (Daily Pakistan Online) Saudi Arabia has signed an agreement to deposit 5 billion dollars in the Central Bank of Turkey through the Saudi Fund for Development (SFD). Saudi Finance Minister Muhammad bin Abdullah al-Jadaan said that this money will be deposited in December.
According to Al Arabiya, Turkey’s net foreign exchange reserves were only around $6 billion last summer, the lowest level in at least 20 years. Turkey has lost about 8.5 billion since a major earthquake hit the southern region of the country in early February. More than 45,000 people were killed in the earthquake and millions were displaced.
Turkey’s central bank’s net international reserves fell by $1.4 billion in the week to February 24 to $20.2 billion. The Saudi deposit is the result of joint efforts by Ankara and Riyadh to improve relations.
Turkey’s foreign exchange reserves have declined sharply in recent years as a result of market interventions and a currency crisis in December 2021. The lira lost about 30 percent of its value against the dollar last year and 44 percent in 2021.
The SFD statement said the deposit agreement was signed by SFD Chairman Ahmed Aqeel Al-Khatib, who is also Saudi Arabia’s tourism minister, and Turkey’s Central Bank Governor Sahap Çavuşoğlu.