Saudi Arabia has shown its willingness to deposit $5 billion in the Turkish central bank to support the forex reserves of Turkiye.
A Saudi Ministry of Finance spokesperson today said the Saudi and Turkish officials are discussing ways and means to finalize the deal.
“We are in final discussion to make a USD 5 billion deposit with the central bank of (Turkey),” the spokesperson told media.
Turkey’s economy has been under pressure due to a slumping lira and soaring inflation of over 85%.
However, a swap or deposit agreement with Saudi Arabia could boost Turkey’s foreign currency reserves and value of Turkish lira.
According to analysts this strategy could also help President Tayyip Erdogan to gather support ahead of elections due by June 2023.
Turkey’s central bank has swap 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 United Arab Emirates for around $5 billion.
