The Central Bank of China

PRESS RELEASE Release Date: October 10, 2003




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Important Measures in September 2003

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 September 2003:

    1. Approved the Taipei Branch of Overseas-Chinese Banking Corp., and International Commercial Bank of China to commence fax banking business involving NT dollar settlements, domestic and international remittances.

    2.Approved TAIPEIBANK to commence telephone banking business involving NT dollar settlements of less than NTD500,000 for transfers between a NT dollar A/C and a foreign currency deposit A/C. Transfers among different foreign currency accounts in the same bank, by the same individual are not subject to the above limit.

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

1.Far Eastern International Bank: FCY Interest Rate Options.

2.Industrial Bank of Taiwan: FCY options, FCY Structured Deposits and FCY Structured Products both composed of FCY options, and FCY deposits.

3.Taiwan Cooperative Bank: FCY Structured Deposits with principal protection and FCY Structured Products without principal protection both composed of FCY options and FCY deposits.

4.Taishin Bank: FCY Commodity Swaps.

    4.Authorized 2 branches of 2 domestic banks to operate foreign exchange business. In addition, 22 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of September, there were 1,069 authorized foreign exchange banks, including 1,002 domestic banks and 67 foreign banks.