The Saudi Development Fund said on Monday that the Kingdom signed an agreement with Ankara to deposit five billion dollars in the Turkish Central Bank through it.

Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan had announced in December the country's intention to deposit the amount.

Despite the recovery of Turkey's net foreign exchange reserves after they had dropped to just over six billion dollars last summer, when they recorded their lowest levels in at least 20 years, they have declined again, falling by about 8.5 billion dollars since the devastating earthquake that struck the south of the country in February, killing more than 45,000 people and displacing millions.

Data from the Turkish Central Bank also showed on Thursday a decline in net foreign exchange reserves by about 1.4 billion dollars to 20.2 billion dollars in the week ending February 24.

The Saudi deposit comes after joint efforts made by both Ankara and Riyadh to mend relations that deteriorated following the killing of Saudi journalist Jamal Khashoggi in 2018 at his country’s consulate in Istanbul.

Turkey's foreign currency reserves have also sharply declined in recent years due to market interventions and following a currency crisis in December 2021.

The lira lost about 30 percent of its value against the dollar last year and 44 percent in 2021.

According to a statement from the fund, the deposit agreement was signed by the Saudi Fund's president Ahmed bin Aqil Al-Khatib and the Governor of the Turkish Central Bank Şahap Kavcıoğlu.