SEOUL - The central banks of South Korea and Türkiye agreed to renew their bilateral currency swap deal for three more years, the Bank of Korea said Monday.

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The BOK and the Central Bank of the Republic of Türkiye announced the renewal of the bilateral swap arrangement, which allows for the exchange of local currencies between the two central banks of up to some $2 billion.

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The renewed accord will be effective for three years from Monday and could be extended by a mutual agreement between the two sides.

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The swap deal was initially signed in 2021. The pact was designed to promote the bilateral trade through a swap-financed trade settlement facility and financial cooperation between the two countries, the BOK said in a statement.