Central Bank renews swap agreement with South Korea

The Central Bank of the Republic of Turkey (TCMB) and the Bank of Korea have renewed their Turkish lira-Korean won bilateral currency swap agreement.

In a statement from the TCMB, it was reported that the agreement was signed by TCMB Governor Fatih Karahan and Bank of Korea Governor Chang Yong Rhee.

The statement noted that the swap agreement will allow for the exchange of local currencies between the two central banks up to a maximum of 56 billion Turkish lira or 2.3 trillion Korean won, reflecting current exchange rates. It stated, "The agreement is valid for 3 years starting from today and may be extended upon mutual consent of the parties. The agreement aims to promote bilateral trade and financial cooperation through currency swap-financed trade settlement.

The parties anticipate that the swap agreement will further strengthen cooperation between the two central banks," the statement added.