Important Measures in June 2005
PRESS RELEASE Release Date: July 13, 2005
Important Measures in June 2005
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 June 2005:
1. For the convenience of the public, the CBC notified banking enterprises engaged in exchanging foreign currency on June 9,2005 that they have the obligation to make deals according to the rate they post, and can not refuse to accept DF series US 100 dollar notes. If counterfeit foreign notes are discovered, banking enterprises must proceed according to Regulations Governing the Handling of Counterfeit Foreign Coins and Notes.
2.The CBC announced the application documents required with respect to insurance enterprises applying for CBC’s consent to conduct foreign currency investment-linked insurance business as well as the guidance on conducting that business on June 24, 2005.
3.Approved the following authorized banks to operate new foreign exchange derivatives business:
(1) The Hongkong and Shanghai Banking Corp.: Structured products composed with NTD/FCY CCS linked with NTD IRS, NTD IRO, FCY IRS, FCY IRO.
(2) Taipei Fubon Bank: Structured products composed with NTD/FCY CCS linked with NTD IRS, FCY IRS, FCY IRO.
(3) JPMorgan Chase Bank, Taipei Branch: Structured products composed with NTD/FCY CCS linked with NTD IRS, FCY IRS, NTD IRO, FCY IRO, FCY Options.
(4) The Standard Bank of South Africa Ltd., Taipei Branch: 「Lending Business of Gold and Silver」with units of ounce and in terms & settlement of US Dollars.
4.The following authorized banks began conducting foreign exchange derivatives business by notifying the CBC after the commencement of business :
Chiao Tung Bank: Structured products composed with NTD Time Deposits linked with FCY Commodity Options
5.Authorized 3 branches of 3 domestic banks to operate the foreign exchange business. In addition, 4 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of June 2005, there were 1,113 authorized foreign exchange banks, including 1,046 domestic banks and 67 foreign banks.