Turkey, South Korea ink $2B currency swap agreement

The central banks of Turkey and South Korea have signed a currency swap agreement that will allow both countries to provide liquidity for the counterparty in a move aimed at strengthening financial stability, the Bank of Korea (BOK) said on Thursday.

The $2 billion (TL 17.19 billion) agreement will enable the Bank of Korea to provide the South Korean won to Turkey and for the Central Bank of the Republic of Turkey (CBRT) to provide the Turkish lira to financial institutions in South Korea, the central bank said in a statement.

The swap agreement, signed by CBRT Governor Şahap Kavcıoğlu and his South Korean counterpart Lee Ju-yeol, aims to boost bilateral trade through a swap-financed trade settlement facility and promote financial cooperation for the economic development of both sides, the bank stressed.