Turkey 'seeks multi-billion dollar deposit' from foe-turned-friend Saudi Arabia

Turkey is reportedly seeking billions of dollars from Saudi Arabia in an effort to bolster its foreign currency reserves amid the Turkish lira's protracted inflationary crisis. 

A Turkish treasury source said talks were ongoing to secure a $20 billion deposit from the Gulf kingdom, Middle East Eye reported on Wednesday. 

Turkish newspaper Dunya reported the same day that Ankara expected an initial $10 billion from Saudi Arabia for treasury bonds and accounts. 

Relations between Ankara and Riyadh thawed significantly in the run-up to Saudi strongman Crown Prince Mohammed bin Salman's visit to Turkey. 

The trip marked an end to a years-long rifted precipitated by the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate in 2018. US intelligence traced the killing directly to bin Salman.

The Turkish lira has lost nearly a quarter of its value this year due to soaring inflation and the central bank’s reluctance to raise interest rates. 

Turkish Finance Minister Nureddin Nebati told journalists earlier this month that Ankara needs $30 billion to $35 billion to finance its current account deficit. 

Foreign exchange reserves are assets held on reserve by a central bank to back liabilities and influence monetary policy. 

Reports suggest that Turkey is also looking to Russia, the UAE and Qatar to bolster its foreign deposits.