The Central Bank of China

PRESS RELEASE Release Date: April 16, 2004




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Important Measures in March 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 March 2004:

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

(1) Bank of Taiwan: FCY Cross Currency Swaps, NTD/FCY Cross Currency Swaps, Foreign Currency Interest Rate Options, FCY/FRA.

(2)Industrial Bank of Taiwan: Foreign Currency Interest Rate Swaps, FCY Cross Currency Swaps.

(3)Far Eastern International Bank: Foreign Currency Interest Rate Swaptions composed of FCY Interest Rate Swaps and FCY Interest Rate Options.

(4)Taishin Bank: FCY Commodity Options.

(5)Taiwan Business Bank: Structured products composed of NT Dollar Time Deposits or FCY Time Deposits linked with Foreign Currency Options.

(6)Deutsche Bank AG: (a)4 categories of Structured Product business composed of FCY Equity & Interest Rate Derivatives, NTD Interest Rate Derivatives and NTD Time Deposits. (b)6 categories of FCY Structured Product Business composed of FCY Equity & Interest Rate Derivatives and FCY Time Deposits. (c)3 categories of Structured Product Business composed of NTD/FCY CCS, NTD/FCY CC Swaptions, FCY Interest Rate Derivatives and NTD Interest Rate Derivatives.

(7)The Bank of Tokyo-Mitsubishi Ltd.: NTD/FCY Cross Currency Swaps.

(8)DBS Bank Ltd.: Foreign Currency Interest Rate Swaptions composed of FCY Interest Rate Swaps and FCY Interest Rate Options.

(9)The Standard Bank of South Africa Ltd.: NTD/FCY Cross Currency Swaps.

2.Approved the International Commercial Bank of China to commence internet banking business involving an ordinary outward or inward remittance with a value equal to or over New Taiwan dollar 500,000.

3. Authorized 2 branches of 2 domestic banks to operate foreign exchange business. As of the end of March 2004, there were 1,080 authorized foreign exchange banks, including 1,013 domestic banks and 67 foreign banks.