RIYADH: Saudi Arabia on Monday deposited $5 billion in the central bank of Turkey to provide a major boost to its economy as last month’s quake grappled the country with inflation and economic crisis and damage ahead of presidential polls.
The Saudi tourism minister Ahmad Al Khateeb and board chairman of the Saudi Fund for Development signed an agreement with Governor Turkish central bank Sahap Kavcioglu “to make a crucial $5 billion deposit”, the Saudi government maintained in a statement.
“The recent deposit is a testament to the close bilateral cooperation and historical ties that exist between Turkey and Saudi Arabia and its people,” the statement further said.
Turkey’s economic situation
The statement maintained that the decision, which will boost Turkey’s foreign reserves and assist it in combating inflation, was made on the order of King Salman and Crown Prince Mohammed bin Salman.
Turkey was already suffering from high inflation and a shaky currency before last month’s massive 7.8-magnitude earthquake that jolted huge swathes of Turkey and parts of Syria, killing more than 51,000 people.
With elections just a few months away, Turkish President Erdogan must now absorb economic damage estimated at more than $34 billion by the World Bank.
