Korea Extends 2.3 Trillion Won Currency Swap with Turkey for 3 Years

[Image source=Yonhap News]

The Bank of Korea has signed a renewal agreement for the won-lira currency swap with the Central Bank of T?rkiye, the Ministry of Economy and Finance announced on the 12th.

The contract amount is approximately 2 billion US dollars (about 2.3 trillion won), and the contract period is three years. Upon maturity, the contract can be extended by mutual agreement.

A currency swap is an agreement that allows countries to deposit their own currency with the other party and borrow the other party's currency or US dollars in emergencies such as a foreign exchange crisis.

The Ministry of Economy and Finance explained, "The purpose of the swap is to promote trade and strengthen financial cooperation between the two countries," adding, "The renewal of the contract will contribute to the economic development and enhanced cooperation of both countries."

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