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Saudi Arabia Deposits $5 Billion in Turkey's Central Bank

Saudi Arabia has agreed to deposit $5 billion in Turkey's central bank through the Saudi Fund for Development (SFD). The deposit was signed between SFD Chairman Ahmed Aqeel Al-Khateeb, Saudi Arabia's tourism minister, and Turkish Central Bank Governor Sahap Kavcioglu.

Aqeel Al-Khateeb, Saudi Fund for Development Chairman
Aqeel Al-Khateeb, Saudi Fund for Development Chairman

Ties Mended Between Saudi Arabia and Turkey

The deposit follows joint efforts by Ankara and Riyadh to mend ties that were ruptured after the murder of Saudi journalist Jamal Khashoggi in 2018 at the kingdom's consulate in Istanbul.

Impact of Turkey's Earthquakes on Forex Reserves

While Turkey's net foreign exchange reserves rebounded from just over $6 billion last summer, when it was at its lowest in at least 20 years, they have lost some $8.5 billion since a massive earthquake hit the country's southern region early in February that killed more than 45,000 people and left millions homeless. The Turkish central bank's net international reserves fell some $1.4 billion to $20.2 billion in the week to Feb. 24, data from the bank showed on Thursday.

Lira's Value Against the Dollar

Turkey's forex reserves dropped sharply in recent years due to market interventions and in the wake of a currency crisis in December 2021. The lira lost 30% of its value against the dollar last year and 44% in 2021.