RIYADH: Saudi Arabia announced on Monday that it would deposit $5 billion in Turkey’s central bank, a potentially significant boost as the country contends with inflation and earthquake-related damage ahead of presidential elections.
Saudi tourism minister and Saudi Fund for Development board chairman Ahmed Al-Khateeb signed an agreement with Turkish central bank governor Sahap Kavcioglu “to make a major $5 billion deposit,” according to a Saudi government statement.
This deposit demonstrates the close cooperation and historical links between the Kingdom of Saudi Arabia, the Republic of Turkey, and its brotherly people, according to the statement.
According to the report, King Salman and Crown Prince Mohammed bin Salman ordered the decision, which will strengthen Turkey’s foreign reserves and help it tackle inflation.
The action signifies a reconciliation between Riyadh and Ankara following the murder of Saudi journalist and government critic Jamal Khashoggi in the kingdom’s Istanbul consulate in 2018.
Khashoggi was murdered and dismembered by Saudi agents, whose remains have never been located.
At the time, Turkey infuriated Saudi Arabia by forcefully pursuing the matter, launching an inquiry, and briefing international media about the gruesome facts of the murder.
US intelligence sources believe Prince Mohammed “authorised” the operation, while Saudi authorities deny this.
Previously, Turkish President Recep Tayyip Erdogan stated that the death was ordered by the “highest levels” of the Saudi government, but he has never placed the blame on Prince Mohammed.
Erdogan has exerted significant effort to reestablish bilateral ties, a move analysts characterise as being primarily motivated by economic motives.
In April of last year, he made his first trip to Saudi Arabia since the murder of Jamal Khashoggi, during which he saw Prince Mohammed before travelling to Mecca.
In June, Prince Mohammed paid a visit to Ankara.
Before last month’s catastrophic 7.8-magnitude earthquake that devastated large portions of the country and parts of Syria, killing more than 50,000 people, Turkey was already suffering from surging inflation and a weakening currency.
A few months before elections, Erdogan must now bear economic losses projected by the World Bank to exceed $34 billion.
