The central banks of Türkiye and Saudi Arabia inked a memorandum to enhance the cooperation in the field of central banking, according to a statement on Wednesday.

"The Central Bank of the Republic of Türkiye (CBRT) signed a memorandum of understanding with the Saudi Central Bank on Sept. 3, 2024, laying the groundwork for enhanced cooperation in the field of central banking," the Turkish central bank said.

The deal was signed by CBRT Governor Fatih Karahan and the Saudi Central Bank’s Governor Ayman M. Al Sayari in Riyadh, it added.

"In the framework of the memorandum of understanding, the two central banks aspire to foster cooperation and carry out corporate technical activities in the field of central banking," the statement read.

Earlier in July, the Turkish central bank announced it had ended a deposit transaction with Saudi Arabia, in a move that reflected authorities' growing confidence in rebuilding foreign exchange reserves without relying on debt from affluent allies.

In a statement, the bank said the move was part of efforts to reduce Türkiye's external liabilities as part of reserve management.

Saudia Arabia had deposited $5 billion before Türkiye's presidential and parliamentary elections last year, which marked a sharp turnaround in policymaking as authorities reversed years of loose policy and delivered aggressive tightening to rein in inflation.

Türkiye and Saudi Arabia mended ties in recent years after an earlier rupture in relations that came after the killing of a Saudi journalist Jamal Khashoggi in Istanbul in 2018.

Karahan, meanwhile in Riyadh also delivered a presentation on fintech and CBRT's role in the payments ecosystem, according to a presentation shared on the central bank's website.