Central bank signs currency swap agreement with Turkey
The deal will last three years.
Currency swap agreement is a tool to provide liquidity for the counterparty in case of financial turmoil. The exchange will be between local currencies -- 2.3 trillion won and 17.5 billion Turkish lira.
According to the central bank, the deal has been inked to bolster financial cooperation and expand trade between the two countries.
Turkey is a major trade partner for Korea. A free trade agreement between the two countries has been effective since May 2013. Last year, trade between the two countries amounted to $6.86 billion.
Korea has signed currency swap deals with nine countries, including the United States, Canada, Switzerland, China, Australia, Malaysia, Indonesia and the United Arab Emirates. The deals add up to over $198.2 billion.
BY KIM JEE-HEE [firstname.lastname@example.org]