The Central Bank of China
PRESS RELEASE Release Date: May 10, 2003




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Important Measures in April, 2003


In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) took the following measures in April 2003:

1.On April 30, 2003, the Central Bank of China amended "Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions". The amendments are as follows:

(1) The declaration of foreign exchange settlements can be classified into three categories: (a).direct settlements with authorized banks, (b).settlements with supporting documents verified by the authorized banks, (c).settlements with prior approval from the CBC.

(2) Enactment of rules related to civil rights and obligations that were previously regulated by the CBC's circular letters.

(3) Define the regulations on foreign exchange settlements that require CBC's prior approval.

(4) Define that under certain conditions, the reporting party may apply to the CBC for modifying the contents of the declaration statements after the declaration has been filed.

(5) Other transaction certificates for foreign exchange receipts and disbursements or transactions not involving the conversion of NT dollars issued by the authorized banks may serve as declaration statements.

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

(1) Chinatrust Commercial Bank:NTD Quanto Inverse Floating Rate Swaps business (NTD Interest Rate Swaps linked with FCY Interest Rate Swap and FCY Interest Rate Option)

(2) E. Sun Bank :Foreign Currency Option business.

(3) Taiwan Cooperative Bank:NTD/FCY Options business, Foreign Currency Options business.

(4) ABN-AMRO Bank, Taipei Branch :Prematured Callable Principal Guaranted FCY Structured Deposits business composed of (i)FCY Deposit linked with FCY Interest Rate Swaps and FCY Interest Rate Swaption, (ii)FCY Deposit linked with FCY Interest Rate Swaps, FCY Interest option and FCY Interest Rate Swaption.

(5) Citibank N.A., Taipei Branch:(a)Callable/Extendible NTD Quanto Inverse Floating Rate Swaps composed of NTD Interest Rate Swaps, FCY Interest Rate Swap, FCY Interest Rate Option and FCY Interest Swaption. (b)NTD Principal Guaranted Structured Deposits including (i)NTD Quanto Inverse Floating Rate Swap Strucutred Deposits business composed of NTD Deposit, NTD Interest Rate Swaps, FCY Interest Rate Swaps and FCY Interest Rate Option. (ii)Callable/Extendible NTD Quanto Inverse Floating Rate Swap Structured Deposits business composed of above-mentioned Structured Products and FCY Interest Rate Swaption.

(6) The Hongkong and Shanghai Banking Corp. Ltd., Taipei Branch :FCY Equity Option and Structured Products business composed of FCY Deposit and FCY Equity Option.

(7) The Development Bank of Singapore Ltd.:FCY Cross Currency Swaps business , NTD/FCY Cross Currency Swaps business.

2. Authorized one branch of International Bank of Taipei to operate foreign exchange business. In addition, 12 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of April, there were 1,047 authorized foreign exchange banks, including 981 domestic banks and 66 foreign banks.