The Central Bank of China

PRESS RELEASE Release Date: March 15, 2003




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Important Measures in February, 2003


In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) took the following measures in February 2003:

1. Effective from February 14, 2003, in order to encourage the domestic firms to reduce foreign exchange risk by hedging, NTD/FCY cross currency swaps transactions with the exchange of principal both at the outset and maturity, will no longer require supporting documents.

2.Approved the following Authorized Banks to operate derivates business:

(1)Chiao Tung Bank operates Foreign Currency Structured Deposits business which is composed of Foreign Currency Deposit and one of FCY Options and FCY IRS , Principal Guaranteed NT Dollar Structured Deposits business which is composed of NT Dollar Time Deposit and one of FCY Options and FCY IRS.

(2)Fubon Commercial Bank operates Principal Guaranteed NT Dollar Structured Deposits busines which is composed of NT Dollar Time Deposit and anyone of FCY, Interest Rate, Equity, Commodity Options, NTD/FCY Cross Currency Swaps business, FCY Interest Rate Options business .

(3)Jin Sun International Bank operates Principal Guaranteed Foreign Currency Structured Deposits business which is composed of Foreign Currency Time Deposit and FCY Equity Options.

(4)Taipei Bank operates FCY Interest Rate Options business.

(5)Grand Commercial Bank operates FCY Options business.

(6)Cathay United Bank operates FCY Equity Options business, Principal Guaranteed Foreign Currency Structured Deposits business which is composed of Foreign Currency Time Deposit and FCY Equity Options, Principal Guaranteed NT Dollar Structured Deposits business which is composed of NT Dollar Time Deposit and FCY Equity Options.

(7)E. Sun Bank operates FCY/FRA business.

(8)Fuhwa Bank operates Foreign Currency Structured Deposits business which is composed of Foreign Currency Time Deposit and FCY Options.

(9)Bank of America , Taipei Branch operates NTD Quanto Interest Rate Swap (NTD Interest Rate Swap linked with FCY Interest Rate Swap and FCY Interest Rate Option).

(10)The Toranto-Dominion Bank, Taipei Branch operates FCY Swaption on CCS & IRS, FCY Inverse Floater Swap, Cancelable/Extendable Interest Swap.

(11)UBS AG, Taipei Branch operates NTD Quanto Interest Rate Swap (NTD Interest Rate Swap linked with FCY Interest Rate Swap and FCY Interest Rate Option).

(12)The Hongkong and Shanghai Banking, Taipei Branch operates NTD Quanto Interest Rate Swap (NTD Interest Rate Swap linked with FCY Interest Rate Swap and FCY Interest Rate Option).

(13)Mizuho Corporate Bank, Taipei Branch operates NTD/FCY Options business.

3. Authorized 4 branches of 2 domestic banks to operate foreign exchange business. In addition, 17 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of February, there were 1,044 authorized foreign exchange banks, including 978 domestic banks and 66 foreign banks.