Saudi Arabia deposits $5bn in Turkiye’s central bank

Riyadh, The Gulf Observer: Saudi Arabia has signed an agreement with Turkiye to deposit $5 billion into the country’s central bank through the Saudi Fund for Development, according to a statement.

The statement revealed that the agreement was signed between the chairman of the board of directors of the SDF, Ahmed Al-Khateeb, and the governor of the Central Bank of Turkiye, Shihab Kavcioglu.

Earlier in December 2022, Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan had announced the Kingdom’s intention to make the deposit in Turkiye’s central bank.

Established in 1974 and commenced operations in 1975, the SFD provides soft loans and grants to finance uplift projects and programs in developing countries.

“To improve the living standards of disadvantaged communities and support countries most in need, SFD works to finance projects to achieve sustainable development goals and enhance the effectiveness of development aid through partnerships and cooperation with regional and international organizations,” says SFD on its website.

Earlier in January, SFD signed a deal with Pakistan’s Economic Affairs Ministry to finance oil derivatives amounting to $1 billion.

The deal came at a time when Pakistan is battling a tough economic situation amid dwindling forex reserves and rapidly depreciating national currency.

In January, SFD also forayed into Caribbean countries by signing an $80 million financing agreement for the expansion project of the University of the West Indies at Five Islands in Antigua and Barbuda.

“Through financing this project, the SFD aims to expand the scope of its operations in the Caribbean, which is in line with the efforts made by the Kingdom’s government to build bridges of cooperation for development with the international community,” said SFD CEO Sultan Al-Marshad.