Turkiye & South Korea renew bilateral currency swap agreement

The Central Bank of the Republic of Turkiye and the Bank of Korea have renewed their bilateral swap arrangement involving the Turkish lira (TRY) and the Korean won (KRW). The agreement was signed by Governor Fatih Karahan of the Central Bank of Turkiye and Governor Chang Yong Rhee of the Bank of Korea.

Under this renewed swap arrangement, the two central banks will be able to exchange local currencies up to TRY 56 billion (approximately $1.66 billion) or KRW 2.3 trillion (approximately $1.69 billion), based on recent exchange rates between the Turkish lira and the Korean won. The agreement is set to remain in effect for three years, with the possibility of extension by mutual consent, the Central Bank of the Republic of Turkiye said in a press release.

The primary purpose of this arrangement is to promote bilateral trade through a swap-financed trade settlement facility, as well as to enhance financial cooperation between Turkiye and South Korea. Both sides anticipate that this renewed arrangement will further strengthen collaboration between the two central banks, fostering closer economic ties between the two nations.

Fibre2Fashion News Desk (DP)