Saudi Arabia has inked an agreement with Türkiye to deposit $5 billion in the country’s central bank through the Saudi Fund for Development, the fund said Monday.
The deposit is "a testament to the close co-operation and historical ties" between the countries and to Saudi Arabia's "commitment to supporting Türkiye's efforts to strengthen its economy and to promote social growth and sustainable development," the fund said.
The decision was made on the order of King Salman and Crown Prince Mohammed bin Salman, it said, aiming to shore up Türkiye's foreign reserves and help it combat inflation.
Saudi Minister of Finance Mohammed Bin Abdullah Al-Jadaan announced his country’s intention to make the deposit in December.
Damages from Türkiye's earthquakes Saudi Arabia's deposit comes after a 7.8-magnitude earthquake on February 6 hit Türkiye, followed by more than several aftershocks and two additional quakes.
The World Bank estimated late February that Türkiye's losses from the two destructive earthquakes that hit its southern parts at over $34.2 billion and counting, or about 4% of the country's gross domestic product (GDP).
Direct damages to residential buildings and non-residential buildings, including homes, schools, and business buildings, represen 81%, or $27.7 billion, of the total damage, while the remaining 19% of damages ($6.4 billion) are related to infrastructure such as roads, power, and water supply.
Türkiye was already suffering from skyrocketing inflation and a weakening currency before last month's earthquakes that rocked swathes of the country and parts of Syria.
