Important Measures in February 2005
PRESS RELEASE Release Date: March 8, 2005
Important Measures in February 2005
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 February 2005:
1. In order to maintain market discipline in the foreign exchange market, the CBC restated on Feb. 24 that authorized foreign exchange banks should undertake foreign exchange forward transactions based on the principle of real demand.
2. Approved Cosmos Bank to operate FCY Options and FCY Structured Products composed of Foreign Exchange Time Deposits and FCY Options.
3. Authorized 2 branches of Chinatrust Commercial Bank to operate the foreign exchange business. In addition, 3 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of February 2005, there were 1,107 authorized foreign exchange banks, including 1,041 domestic banks and 66 foreign banks.