Bank of Korea and Central Bank of the Republic of Türkiye Renew Bilateral Currency Swap Arrangement
Summary
The Bank of Korea and the Central Bank of the Republic of Türkiye have renewed their bilateral currency swap arrangement. This arrangement will allow the two central banks to exchange their currencies in order to promote financial stability and support economic growth in both countries.
Key Points
- The currency swap arrangement was first established in 2012 and has been renewed several times since then.
- The arrangement allows the two central banks to exchange up to $2 billion worth of their currencies.
- The renewal of the arrangement demonstrates the strong economic ties between Korea and Türkiye.
Benefits of the Currency Swap Arrangement
The currency swap arrangement provides a number of benefits for both Korea and Türkiye, including:
- Financial stability: The arrangement can help to promote financial stability in both countries by providing a source of liquidity in times of stress.
- Economic growth: The arrangement can support economic growth in both countries by facilitating trade and investment.
- Bilateral cooperation: The arrangement strengthens the economic ties between Korea and Türkiye and promotes bilateral cooperation.
Conclusion
The renewal of the bilateral currency swap arrangement between the Bank of Korea and the Central Bank of the Republic of Türkiye is a positive development that will benefit both countries. The arrangement will help to promote financial stability, support economic growth, and strengthen bilateral cooperation.
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