The Central Bank of China

PRESS RELEASE Release Date: February 3, 2004




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Important Measures in January 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 January 2004:

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

1.Fuhwa Bank: NTD/FCY Cross Currency Swaps business.
2.E. Sun Bank: FCY Interest Rate Options business.
3.Tai Shin Bank:1.FCY Interest Rate Swaptions 2.NTD Interest Rate Swaps and FCY Interest Rate Swaps 3. NTD Interest Rate Swaps and FCY Interest Rate Swaps and FCY Interest Rate Options 4. NTD Interest Rate Swaps and FCY Interest Rate Swaps and FCY Interest Rate Swaptions 5. NTD Interest Rate Swaps and FCY Interest Rate Swaps and FCY Interest Rate Options and FCY Interest Rate Swapations 6. Any structured business composed of NTD Time Deposits and the above FCY Structured Products.
4.Industrial Bank of Taiwan:NTD/FCY Cross Currency Swaps business
5.Bank SinoPac:1. FCY Interest Rate Swaps and FCY Interest Rate Options 2. FCY Interest Rate Swaps and FCY Interest Rate Swaptions 3. FCY Interest Rate Swaps and FCY Interest Rate Options and FCY Interest Rate Swaptions 4. Any structured business composed of FCY Time Deposits and the above products.
   2.Authorized 7 branches of 4 domestic banks to operate foreign exchange business. In addition, 6 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of January, 2004, there were 1,078 authorized foreign exchange banks, including 1,011 domestic banks and 67 foreign banks.