The Central Bank of China
PRESS RELEASE Release Date: July 8, 2004




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Important Measures in June 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 June 2004:

1. Approved Chinatrust Commercial Bank to commence internet banking business involving transfers or remittances.

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

(1) The Farmer Bank of China: Structured Products composed of Foreign Currency Time Deposits or NTD Time Deposits and FCY Options.

(2) Land Bank of Taiwan: Structured Products composed of Foreign Currency Time Deposits and FCY Options.

(3) Far Eastern International Bank: FCY Commodity Options.

(4) KBC Bank, N.V., Taipei Branch: Foreign Currency Interest Rate Swaptions composed of FCY Interest Rate Options and FCY Interest Rate Swaps.

(5) DBS Bank, Ltd., Taipei Branch: Structured Deposits with principal protection composed of NTD or FCY Time Deposits and FCY Options or FCY Interest Rate Options.

3. Authorized 4 branches of 3 domestic banks to operate foreign exchange business. As of the end of June 2004, there were 1,087 authorized foreign exchange banks, including 1,020 domestic banks and 67 foreign banks.