$5 billion deposited by Saudi Arabia in Turkey's Central Bank

By Al Mayadeen English
Source: Agencies
6 Mar 16:35
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The Saudi government says the deposit comes as "a testament to the close cooperation and historical ties" between the two countries.

Saudi Minister of Tourism and Chairman of the Saudi Fund for Development (SFD) Board of Directors Ahmed Aqeel Al-Khateeb and Governor of the Central Bank of the Republic of Turkey Sahap Kavcioglu in Turkey on March 6, 2023. (Saudi Fund for Development)

Saudi Arabia announced that it was placing a $5 billion deposit in Turkey's Central Bank, a cash flow that comes as the country - already struggling with deep economic problems and high inflation - battles with the aftermath of the devastating economy as milestone presidential elections loom in.

According to a Saudi government statement, the Saudi Minister of Tourism and Chairman of the Board of Directors of the Saudi Fund for Development Ahmed Al-Khateeb signed an agreement with the Central Bank's Governor Sahap Kavcioglu "to make a significant $5 billion deposit."

"This deposit is 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," the statement added, noting that the deposit was directly instructed by King Salman and Crown Prince Mohammed bin Salman.

Turkey has been seeking a revival in its relationship with Gulf countries, with which its ties have been strained since the so-called "Arab Spring".

The rapprochement between the two countries comes after severe diplomatic tensions following the murder of Saudi journalist Jamal Khashoggi in the Saudi consulate in Istanbul in 2018, which Ankara insisted on investigating, while Turkish President Recept Tayyip Erdogan said on several occasions that the murder was ordered by the "highest levels" of the Saudi government, hinting at the crown prince.

In April 2022, a Turkish court decided to halt the trial of the crime - though in the absence of 26 suspects linked to the murder of Khashoggi - and has authorized its transfer to Riyadh.

Following the court's decision, Erdogan marked, during the same month, his first visit to the Kingdom since the murder and met with King Salman and Bin Salman, where the economic relations between both countries topped the trip's agenda.

In June, Saudi Arabia's de facto ruler Mohammad bin Salman landed in Turkey, also marking his first trip to the country following the crime.