Türkiye ends deposit transaction with Saudi Arabia to reduce external liabilities

ANKARA

The Central Bank of Türkiye has announced on Wednesday that it terminated deposit transaction carried out with Saudi Arabia.

The termination of transaction worth $5 billion was aiming to reduce external liabilities of the country as part of reserve management.

"Our external liabilities have recently improved by approximately USD 7 billion through the reduction of deposit balances," the bank said.

The Saudi Fund for Development decided to hold deposit in Turkish Central Bank in 2023, after ministerial meetings in 2022.

"Our reserves have strengthened as a result of the increased influx of foreign resources, dollarization reverse, and reduced external financing needs resulting from our (medium-term economic) program," said Mehmet Şimşek, treasury and finance minister.

"Consequently, we are reducing external liabilities," Şimşek wrote on social media platform X.

 "Our economic and financial cooperation with Saudi Arabia will continue."