SEOUL — The Bank of Korea announced on Monday that South Korea and Turkey have agreed to extend their currency swap arrangement for an additional three years. This extension builds on the initial three-year agreement established in 2021, which was valued at approximately 2.3 trillion won (US$2 billion).
According to Yonhap News Agency, The 2021 agreement, signed between the Bank of Korea and the Central Bank of the Republic of Turkey, facilitates the exchange of local currencies between the two nations. "This arrangement aims to promote bilateral trade and enhance financial cooperation by providing a swap-financed trade settlement facility," the central banks stated. The renewal of this deal is expected to further solidify the financial collaboration and bolster the defenses of both economies against potential financial crises through enhanced liquidity options.