Saudi Arabia deposits US$5 billion in Turkish central bank in aftermath of Turkey-Syria quake

There were no details on how the cash, likely helping Ankara firm up its currency, would be used or if the kingdom could call for it to be returned

The deposit shows how far relations have improved between the kingdom and Turkey after years of tensions especially after the 2018 killing of Jamal Khashoggi

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A street market at Eminonu commercial area in Istanbul, Turkey. Saudi Arabia said it deposited US$5 billion into the Turkish central bank, with no details on how the cash would be used or if the kingdom could call for the sum to be returned. Photo: AP

Published: 8:42pm, 6 Mar 2023

Saudi Arabia said on Monday it deposited US$5 billion into the Turkish central bank, likely helping Ankara firm up its long-weakening currency, the lira, after last month’s massive earthquake that struck southeast Turkey and northern Syria.

The deposit provides a capstone for just how far relations have improved between the kingdom and Turkey after years of tensions between the nations, particularly after the 2018 killing and dismemberment of Washington Post columnist Jamal Khashoggi at the Saudi consulate in Istanbul. Turkey also backed Qatar in a years-long boycott by the kingdom, Bahrain, Egypt and the United Arab Emirates.

The deposit will also likely help boost Turkish President Recep Tayyip Erdogan ahead of coming elections this year.

The kingdom made the announcement via a statement on the state-run Saudi Press Agency, describing it as “a testament to the close cooperation and historical ties that exist between the kingdom of Saudi Arabia and the Republic of Turkey and its brotherly people”. It said the money came from the Saudi Fund for Development.

The statement offered no details on how the cash would be used or if the kingdom could call for the sum to be returned. However, such deposits can help firm up exchange rates for a nation’s currency against other currencies internationally.

Turkey’s state-run Anadolu news agency praised the deposit, saying it reflected the kingdom’s “strong support for the Turkish people and its confidence in the future of the Turkish economy”.

“This agreement supports Turkey’s economic and social growth and sustainable development,” the agency said. “Thanks to this deposit, it is aimed to contribute to the solution of economic problems in various sectors.”