#shut your cheap gob who are you to tell me. arab obsession? only pakistanis in pak suffer from inferiority complex and run to kiss gulfies a sses, only to be treated like dogs. from jenrails to politicians to civilians to members on this forum who run to their master in the middle east.
Dude, you need to take your medicine regularly. To you not insulting Arabs 24/7 is "worship". What is your problem if most Pakistanis have a positive/cordial view of Arabs? Arabs have hosted millions of Pakistanis for decades, helped Pakistan in every way (since 1948) and overall not hurt Pakistan or Pakistanis. Not going to talk about the ancient historical ties since IVC, religious, cultural, linguistic, people to people etc Prefer Arabs over your bharat and gora "masters" every day of the week. I am talking about the average people here, not regimes.
Saudi Arabia pumps $5bn into Turkish economy
SPECIAL
A man leaves the Central Bank of the Republic of Turkiye (CBRT) headquarters, Ankara, Turkiye, Apr. 19, 2015. (Reuters)
MENEKSE TOKYAY
March 06, 2023 23:59
- The deposit will provide a major boost to the Turkish economy – struggling in the wake of February’s devastating earthquakes and rising inflation
- Ankara has been working to consolidate its economic and business ties with the Gulf region by securing foreign currency inflows
ANKARA: Saudi Arabia and Turkiye on Monday concluded a long-awaited agreement for the Kingdom to invest $5 billion in the central bank in Ankara.
The deposit will provide a major boost to the Turkish economy – struggling in the wake of February’s devastating earthquakes and rising inflation – ahead of the parliamentary and presidential elections on May 14.
The Saudi Fund for Development said the deal was “not only the proof of close cooperation and historical ties between the two countries and its brotherly people, but also a demonstration of the commitment of the Kingdom of Saudi Arabia to support Turkiye’s efforts to strengthen its economy.”
Ankara has been working to consolidate its economic and business ties with the Gulf region, including the UAE and Saudi Arabia, by securing foreign currency inflows.
Enver Erkan, an economist from Dinamik Yatirim, in Istanbul, told Arab News: “The $5 billion deposit to be invested in the CBRT is expected to critically contribute to the Turkish economy in recovering financial damages after the earthquake and in preparing for the approaching parliamentary and presidential elections.”
Initial estimates put the cost of quake damage in Turkiye at around $34 billion – approximately 4 percent of its annual economic output. The Turkish Enterprise and Business Confederation has calculated the figure to be $84.1 billion, mainly in relation to the housing sector.
“Since Turkiye’s current account deficit will probably be in the range of $30 billion to $40 billion this year, financing resources are of critical importance. The reconstruction efforts in the earthquake-hit region of the country will also require financial backing for financing the economic damage and keeping the exchange rate stable in this period,” Erkan said.
The Turkish lira lost 30 percent of its value against the dollar last year and the country has faced a serious shortage of foreign currency reserves for the last five years.
The nation was also hit hard by soaring energy prices after Russia’s invasion of Ukraine, due to being heavily dependent on imports. The depreciation of the Turkish lira coupled with ongoing high inflation rates has hit living costs in the country.
Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, told Arab News: “Saudi Arabia has been shoring up relations with regional actors for some time now – it’s not surprising that Turkiye is now in focus. Saudi Arabia is willing to throw some of its financial largesse around the region to secure a regional leadership status.
“Yet this economic support comes at a time when Turkiye is the much weaker partner and in desperate need of assistance. To the degree that this may be the beginning of better relations, these new ties will be determined largely on Saudi terms,” he said.
On March 3, Turkiye and the UAE signed a comprehensive economic partnership agreement to cut 93 percent of tariffs on non-oil trade and increase bilateral trade from $19 billion to $40 billion in the next five years. The deal with the UAE is expected to be ratified in the second quarter of this year.
Timothy Ash, a London-based emerging markets strategist at BlueBay Asset Management, said foreign exchange deposits at the CBRT would not have much impact in terms of earthquake support, but would help toward supporting Turkiye’s currency and political stability.
“I think there are much more direct and effective ways to provide earthquake relief with the money,” he added.
Ash pointed out that the latest financial deal would assist the CBRT to support the lira while providing a sense of stability in the run up to elections, thereby helping Turkish President Recep Tayyip Erdogan secure another term in office.
ANKARA: Saudi Arabia and Turkiye on Monday concluded a long-awaited agreement for the Kingdom to invest $5 billion in the central bank in Ankara. The deposit will provide a major boost to the Turkish economy – struggling in the wake of February’s devastating earthquakes and rising inflation –...
www.arabnews.com
audi Arabia deposits $5 billion in Türkiye’s central bank
BY DAILY SABAH WITH AGENCIES
ISTANBUL MAR 06, 2023 - 3:19 PM GMT+3
Saudi Arabia's Tourism Minister and Chair of the Saudi Fund for Development (SFD) Ahmed Aqeel Al Khateeb (L) and Central Bank of the Republic of Türkiye (CBRT) Governor Şahap Kavcıoğlu meet in Ankara, Türkiye, March 6, 2023. (Courtesy of SFD)
Saudi Arabia on Monday announced it had signed an agreement with Türkiye to deposit $5 billion (TL 94.57 billion) in the country’s central bank, in a significant boost as the economy grapples with inflation emerging from last month’s
massive earthquakes ahead of presidential elections.
The kingdom described the move as “a testament to the close cooperation and historical ties between the Kingdom of Saudi Arabia and the Republic of Türkiye and its brotherly people.”
It also marks “a demonstration of the Kingdom of Saudi Arabia’s commitment to supporting Türkiye’s efforts to strengthen its economy and to promote social growth and sustainable development,” the Saudi Fund for Development (SFD) said in a statement.
Saudi Minister of Finance Mohammed bin Abdullah Al-Jadaan announced his
country’s intention to deposit in December.
The statement offered no details on how the cash would be used or if the kingdom could call for the sum to be returned. However, such deposits can help firm up exchange rates for a nation’s currency against other currencies internationally.
Türkiye’s net foreign exchange reserves rebounded from over $6 billion last summer, when it was at its lowest in at least 20 years, while they have declined some $8.5 billion since devastating earthquakes hit the country’s southern region early in February,
killing more than 45,000 people and leaving millions homeless.
The Central Bank of the Republic of Türkiye’s (CBRT) net international reserves fell some $1.4 billion to $20.2 billion in the week of Feb. 24, data from the monetary authority showed on Thursday.
The deposit will shore up Türkiye’s foreign reserve and is likely to help further firm up the Turkish lira. The currency depreciated 30% against the U.S. dollar last year and 44% in 2021.
The decision, which is also expected to help Türkiye combat inflation, was made on the order of King Salman and Crown Prince Mohammed bin Salman (MBS), the statement said.
“The deposit will bolster the Turkish economy by addressing economic aspects across various sectors. By making this deposit, the Kingdom of Saudi Arabia is expressing its strong support for the Turkish people and its confidence in the future of the Turkish economy,” it noted.
The Saudi deposit follows joint efforts by Ankara and Riyadh to mend ties following years of tension, which escalated significantly after the 2018 murder of dissident Saudi journalist Jamal Khashoggi in Saudi Arabia’s Istanbul Consulate.
President Recep Tayyip Erdoğan’s
visit to Saudi Arabia in April last year marked the first high-level visit in years. His trip was followed by
MBS’s trip to Türkiye in June.
The two leaders also
met in November on the sidelines of the G-20 summit in Bali, Indonesia.
The deposit was signed between SFD Chairperson Ahmed Aqeel Al Khateeb, who is also Saudi Arabia’s tourism minister, and CBRT head Şahap Kavcıoğlu, the SFD statement said.
Türkiye has been struggling with high inflation, which has been in a downward trend and
fell to 55.18% in February, marking a fourth straight month of slowdown and the lowest level in a year.
Heading into presidential and parliamentary elections, scheduled for May 14, Erdoğan has pledged to ramp up spending in a swift campaign to rebuild the regions flatted by the February quakes within a year.
Close to 204,000 buildings
collapsed or were severely damaged, leaving hundreds of thousands homeless.
According to the World Bank, the quakes and their aftershocks caused an estimated $34 billion in damage. The estimate does not include the eventual costs of reconstruction that are “potentially twice as large,” the Washington-based institution said.
Saudi Arabia on Monday announced it had signed an agreement with Türkiye to deposit $5 billion (TL 94.57 billion) in the countryâs central bank, in a...
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