Saudi Arabia says it deposited USD 5 billion in Turkish central bank

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

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 Turkiye and its brotherly people”.

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 nations currency against other currencies internationally.

Turkiye has been struggling with high inflation and a weakening lira even before the February 6 earthquake and many of its strong aftershocks. A year ago, USD 1 bought you 14.26 lira. Today, USD 1 is worth 18.90 lira.

The quake killed around 50,000 people the vast majority in Turkey. Close to 204,000 buildings either collapsed or were severely damaged in Turkiye, leaving hundreds of thousands of people homeless.

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