Saudi Arabia is set to deposit $5 billion in the Turkish central bank, which is expected to boost the country’s currency rates as it tries to recover from a massive earthquake. The deposit will be made via the Saudi Fund for Development (SFD) and was announced by the Saudi finance minister in December. The move is seen as a testament to the close cooperation and historical ties between the two countries. The deposit could help boost the Turkish currency’s exchange rate against international currencies, which has fallen sharply over the past two years. The deposit is said to have been made on the order of Saudi Arabia’s King Salman and Crown Prince Mohammed bin Salman.
Turkey’s economy is currently under huge strain, with an earthquake in February adding to its problems. The European Bank for Reconstruction and Development (EBRD) has predicted that Turkey could lose up to 1% of GDP this year due to the disaster. The earthquake, which came just months ahead of the presidential elections due on May 14, put the spotlight on a lack of disaster preparedness of the Turkish government, with some survivors blaming the administration for its delayed rescue attempts.
Saudi Arabia’s move to grant $5 billion is seen by some experts as an endorsement of Turkish President Tayyip Erdogan ahead of the elections. However, the ties between Riyadh and Ankara were negatively affected following the 2018 murder of journalist Jamal Khashoggi in the Saudi consulate in Istanbul. Turkey strongly pursued the case, with Erdogan pinning the blame for the murder on the top echelons of the Saudi regime.