The Central Bank of China
PRESS RELEASE Release Date: December 8, 2004



Important Measures in November 2004

In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) announced the following measures in November 2004:

1. CBC announced that banking enterprises that purchase or sell foreign currencies should bear the responsibility of exchanging foreign currencies, improve their ability to identify counterfeit notes and can not refuse to exchange foreign currencies or require customers to provide them with purchase memos.

2. In accordance with FAIT¡¦s anti-terrorism suggestions, CBC announced that authorized banks should list the remitter¡¦s name, account number or ID number and address in the remittance message in an outward remittance transaction.

3. Approved the following Authorized Banks to operate new foreign exchange derivatives business:

(1) International Commercial Bank of China: FCY FRAs.

(2) Oversea-Chinese Banking Corp., Ltd., Taipei Branch: FCY Interest Rate Swaps.

(3) Macoto Bank: NTD/FCY Cross Currency Swaps.

(4) Union Bank of Taiwan: NTD/FCY Options.

4. As of the end of November 2004, there were 1,098 authorized foreign exchange banks, including 1,032 domestic banks and 66 foreign banks. In addition, 1 non-authorized foreign exchange bank was approved to sell/buy foreign currency banknotes and traveler¡¦s checks.