Central Bank of China

PRESS RELEASE Release Date: Mar. 28, 2002




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MONETARY POLICY DECISIONS OF THE BOARD MEETING (Mar. 28, 2002)

After considering the developments in domestic and global economic conditions, the future directions for monetary policy of the Central Bank of China (CBC) shall be the following:

1.To promote sustainable economic growth with the precondition of price stability, the discount rate and the rate on accommodations with collateral are maintained at 2.125% and 2.5% per annum, respectively.

2.To maintain the dynamic stability of the NT dollar exchange rate, the CBC will step in, as deemed appropriate, when the foreign exchange market is disrupted by seasonal or irregular factors, or by irrational expectations.

3.The CBC will continue to provide sufficient liquidity necessary for economic recovery. In the meantime, the CBC urges banks to fully exercise their function of financial intermediaries. With the precondition of risk control, the CBC suggests banks to actively extend loans to the enterprises that are operating and paying interest normally to help accelerate economic growth.