The Saudi Central Bank (SAMA) and the Central Bank of the Republic of Türkiye (CBRT) have formalized their collaboration by signing a memorandum of understanding (MoU). This agreement aims to strengthen ties between the two institutions, focusing on enhanced cooperation, financial stability, and technological advancements, as stated in a press release from SAMA.
The MoU was signed during a meeting held between SAMA Governor Ayman Al-Sayari and CBRT Governor Dr. Fatih Karahan, taking place alongside the 24Fintech conference in Riyadh.
Through this partnership, the central banks plan to exchange expertise, best practices, and resources to tackle shared challenges and foster economic development in both Türkiye and Saudi Arabia.
Read more: Türkiye terminates $5 billion deposit with Saudi Arabia to reduce external debt
Reducing external debt
In July 2024, Türkiye’s Central Bank announced the cancellation of a $5 billion deposit arrangement with Saudi Arabia. This decision is part of Türkiye’s strategy to bolster its foreign exchange reserves independently, without depending on loans from affluent partners. The deposit had been made by Saudi Arabia prior to Türkiye’s presidential and parliamentary elections last year, reflecting a notable change in policy direction as the government shifted from years of lenient policies to implementing stringent measures to combat persistently high inflation.
Ambitious trade targets
The economic and trade relationship between Türkiye and Saudi Arabia continues to strengthen. In 2022, trade between the two nations reached $6.5 billion, with expectations for further growth in 2023.
Turkish Trade Minister Ömer Bolat reported in July 2024 that in the first half of 2023, trade with Saudi Arabia had already amounted to $3.4 billion. He emphasized the ambition to elevate mutual trade to $10 billion in the near term and to $30 billion in the long run. According to the minister, both Türkiye and Saudi Arabia hold significant trade and investment opportunities, supported by their interconnected economies, solid infrastructure, and competitive markets.
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