Azerbaijan, Baku, Feb. 21 / Trend A.Taghiyeva /
The Central Bank of Turkey and the People's Bank of China signed today a three-year agreement on currency swap transactions, the Central Bank of Turkey said on Tuesday.
The cost of the agreement is three billion Turkish liras (10 billion Chinese yuan). It is aimed at facilitating trade and investment between countries in local currency.
Three years later the agreement may be prolonged with the consent of the parties.
To date, the People's Bank of China signed an agreement on currency swap transactions with the central banks and monetary control authorities of 16 countries and regions, including South Korea, Malaysia, Hong Kong, the Republic of Belarus, Argentina and the UAE.
A currency swap is a operation between the two parties on swap of funds in two different currencies at a fixed rate with obligation to carry out reverse transaction within the prescribed time.