RIYADH: Saudi Arabia will place a $5 billion deposit at Turkiye’s central bank within days, the Kingdom’s finance minister Mohammed al-Jadaan confirmed.
"There is great improvement in our relationship with Turkiye and we aspire for investment opportunities in Turkiye and other countries," he said.
Turkiye’s central bank has swapped deals in local currencies with several of its counterparts worth a total of $28 billion. It signed a deal with China for $6 billion, with Qatar for $15 billion, with the UAE for around $5 billion.
Similarly, last month, the Kingdom extended the term for a $5 billion deposit made to Egypt’s central bank back in March after the country came under increasing financial pressure following Russia’s invasion of Ukraine, Saudi Press Agency reported.
The extension came at the directive of King Salman and Crown Prince Mohammed bin Salman and aims to enhance economic stability in Egypt.
Turkiye is seeking more cooperation with Saudi Arabia and other countries as it plans to be an energy hub to Europe, its finance minister said.
“Turkiye, from its geographical position, is an energy corridor from Russia, Iran, and Saudi Arabia. Any kind of natural gas or oil that is going to be transported or shipped, will cost less and will be more safely shipped,” Turkiye's Treasury and Finance Minister Nureddin Nebati told Arab News in an interview in October.
Speaking on the sideline of the 6th edition of Future Investment Initiative forum in Riyadh, the minister didn’t elaborate further on how the two countries might cooperate but said that peace in the region will bring energy costs down.
“Turkiye and Saudi Arabia are also assisting each other, which will bring peace in the region. That peace will bring more affordable gas prices, the energy prices, and will allow both countries to look ahead,” he added.
Turkiye’s economy has been badly strained by a slumping lira and soaring inflation of over 85 percent and a swap or deposit agreement could boost Turkiye’s diminished foreign currency reserves.
Analysts say this could also help President Tayyip Erdogan shore up support ahead of elections due by June 2023.