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South Korea and Turkey have signed a three-year currency swap agreement for 2.3 trillion won to boost trade between them.
The agreement was signed by the Bank of Korea and the Central Bank of the Republic of Turkey.
The BOK said the agreement is designed to promote bilateral trade through a swap-financed trade settlement facility and the two countries' financial cooperation for economic development.
The deal is renewable through a bilateral agreement, according to the BOK.
A currency swap allows countries beset by a liquidity crunch to borrow money from other countries by using its currency.
South Korea has bilateral currency swap arrangements with seven other countries, including the US, Australia, and China.
In June, the BOK and the US Federal Reserve agreed to prolong their $60 billion currency swap, set to expire on Sept. 30, by another three months to ease market uncertainties in South Korea over the pandemic.
