The Central Bank of China

PRESS RELEASE Release Date: January 5, 2002




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Important Measures in December, 2001

In line with our policy of liberalization and internationalization, and for further development of foreign exchange business, the Central Bank of China (CBC) took the following measures in December 2001:

1. On December 7, 2001, the CBC endorsed the Ministry of Finance's decision to set the total quota for domestic securities investment trust companies to raise funds from the domestic market for investment in foreign securities at NT$ 60 billion.

2. On December 31, 2001, the CBC amended Articles 2 and 6 of the Regulations Governing Foreign Exchange Receipts and Disbursements or Transactions. The amendment specifies those who need to purchase foreign exchange to make disbursements or to sell foreign exchange obtained legally have the obligation to report. In addition, it also regulates the report of foreign exchange settlements made by trustees, foreign nationals without Alien Resident Certificates and foreign legal entities without registration with the R.O.C. government.

3. Announced that the Guidelines for Foreign Authorized Banks Granting Export Loans Through Advance Settlements of Foreign Exchange will be suspended from January 1, 2002.+

4. Approved the Chinese Bank to commence Internet banking business involving foreign currencies.

5 Approved the following Authorized Banks to operate derivatives business:

(1) First Commercial Bank operates NT Dollar Structured Deposits or Foreign Currency Structured Deposits business, which is composed of NT Dollar Deposits or Foreign Currency Deposits and Foreign Currency Options.

(2) Deutsche Bank, Taipei Branch operates Foreign Currency Structured Deposits business, which is composed of Foreign Currency Time Deposits and Foreign Currency Options.

(3) Cathay United Bank operates Foreign Currency Options business and Foreign Currency Structured Deposits business which is composed of Foreign Currency Time Deposits and Foreign Currency Options.

(4) Chinatrust Commercial Bank operates Foreign Equity Options business.

6. Approved 11 non-authorized foreign exchange banks to sell/buy foreign currency banknotes and traveler's checks.