Türkiye ends $5B deposit deal with Saudi Arabia, bolsters reserves

Central Bank of the Republic of Türkiye (CBRT) has concluded a $5 billion deposit agreement with the Saudi Fund for Development. This move is part of CBRT’s strategy to manage reserves and reduce external obligations.

CBRT’s announcement

In a statement, CBRT outlined that it had reviewed its international deposit agreements as part of its reserve management efforts. The bank highlighted that the termination of the deposit deal with Saudi Arabia was mutually agreed upon, resulting in a significant improvement in external obligations.

Financial impact

According to CBRT, reducing deposit balances has led to an approximate $7 billion improvement in external liabilities. This step is aligned with Türkiye’s broader financial strategy to strengthen its economic stability.

Minister Simsek’s remarks

Treasury and Finance Minister Mehmet Simsek also commented on the development, emphasizing the positive outcomes of their financial program. He also noted that economic and financial cooperation with Saudi Arabia would continue.

With increased external resources, reverse dollarization, and a decreased need for foreign financing, our reserves have strengthened. This allows us to reduce our external obligations

Mehmet Simsek

Türkiye to reduce reliance on external financing

The end of the $5 billion deposit deal with Saudi Arabia marks a significant step in Türkiye’s efforts to manage its reserves more effectively and reduce its reliance on external financing. Collaboration between the two nations in economic and financial matters is expected to persist, contributing to mutual growth and stability.