Discussions in the final stage. Saudi Arabia Considers Placing $5 Billion With Turkey’s Central Bank

A spokesman for the Saudi Ministry of Finance said that Saudi Arabia and Turkey are discussing Riyadh’s placement of $5 billion with the Turkish Central Bank.

“We have reached the final stage of negotiations for a $5 billion placement with the Turkish Central Bank,” the spokesman said in an emailed response to a Reuters inquiry.

The Turkish economy is under intense pressure as the lira depreciates and inflation rises by more than 85 percent. A swap or deposit agreement will support Turkey’s dwindling foreign exchange reserves.

The Central Bank of Turkey entered into swap deals in local currencies with several of its counterparties for a total of $28 billion.

Turkey’s central bank signed deals with China for $6 billion, with Qatar for $15 billion and with the UAE for about $5 billion.

Source: Reuters