(Adds details on reserves, background)
DUBAI, March 6 (Reuters) - Saudi Arabia has signed an
agreement with Turkey to deposit $5 billion in the country's
central bank through the Saudi Fund for Development (SFD), the
fund said on Monday.
Saudi Minister of Finance Mohammed Bin Abdullah Al-Jadaan
announced his country's intention to make the deposit in
December.
While Turkey's net foreign exchange reserves rebounded from
just over $6 billion last summer, when it was at its lowest in
at least 20 years, they have lost some $8.5 billion since a
massive earthquake hit the country's southern region early in
February that killed more than 45,000 people and left millions
homeless.
The Turkish central bank's net international reserves fell
some $1.4 billion to $20.2 billion in the week to Feb. 24, data
from the bank showed on Thursday.
The Saudi deposit follows joint efforts by Ankara and Riyadh
to mend ties that were ruptured after the murder of Saudi
journalist Jamal Khashoggi in 2018 at the kingdom's consulate in
Istanbul.
Turkey's forex reserves dropped sharply in recent years due
to market interventions and in the wake of a currency crisis in
December 2021. The lira lost some 30% of its value against the
dollar last year and 44% in 2021.
The deposit was signed between SFD Chairman Ahmed Aqeel
Al-Khateeb, who is also Saudi Arabia's tourism minister, and
Turkish Central Bank Governor Sahap Kavcioglu, the SFD statement
said.
(Reporting by Ghaida Ghantous; Writing by Yousef Saba and
Clauda Tanios; Editing by Jason Neely and Shounak Dasgupta)
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