Important Measures in December 2004
PRESS RELEASE Release Date: January 13, 2005
Important Measures in December 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 December 2004:
1. Approved Bank of Taiwan to commence internet banking business involving foreign currencies.
2. Approved the following authorized banks to operate new foreign exchange derivatives business:
(1) United Overseas Bank Taipei Branch: NTD/FCY Options.
(2) The Standard Bank of South Africa Ltd.: FCY Interest Rate Swaps.
(3) Societe Generale Taipei Branch: (1) FCY Interest Rate Swaption, (2) NTD Interest Rate Swaps linked with FCY Interest Rate Swaps, (3) Structured Products composed of NTD Interest Rate Swaps linked with FCY Interest Rate Swaps and FCY Interest Rate Options, and (4) Structured Products composed of NTD Interest Rate Swaps linked with FCY Interest Rate Swaps, FCY Interest Rate Options and FCY Interest Rate Swaption.
(4) Sunny Bank: FCY Options.
(5) Bank of America, Taipei Branch: 12 items consisting of FRA’s linked with Interest Rate Derivatives.
3. Authorized 6 branches of 3 domestic banks to operate the foreign exchange business. In addition, 3 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of December 2004, there were 1,104 authorized foreign exchange banks, including 1,038 domestic banks and 66 foreign banks.