The State Bank of Pakistan (SBP) and the Central Bank of Turkey on Tuesday reached a $1 billion currency swap arrangement in Istanbul during a visit of President Asif Ali Zardari.
SBP Governor Yaseen Anwar and Turkish Central Bank Governor Erdem Basci inked the agreement in presence of President Zardari and his Turkish counterpart Abdullah Gul, says an SBP announcement.
The currency swap arrangement has been concluded in Pakistani rupees and Turkish lira with a size amounting to $1 billion in equivalent of local currencies.
The core objective of the arrangement, which will be for three years, is to finance bilateral trade in local currencies of the two countries.
The central bank said this was a landmark transaction between the two central banks and was the first time they had executed such an arrangement.
Published in The Express Tribune, November 2nd, 2011.