South Korea, Turkey renew currency swap deal for 3 years

Seoul : The central banks of South Korea and Turkey agreed to renew their bilateral currency swap deal for three more years, the Bank of Korea (BOK) said on Monday.

The BOK and the Central Bank of the Republic of Turkey announced the renewal of the bilateral swap arrangement, which allows for the exchange of local currencies between the two central banks of up to some $2 billion, reports Xinhua news agency.

The renewed accord will be effective for three years starting Monday and could be extended by a mutual agreement between the two sides. The swap deal was initially signed in 2021.

The pact was designed to promote bilateral trade through a swap-financed trade settlement facility and financial cooperation between the two countries, the BOK said in a statement.