The Central Bank of China

PRESS RELEASE Release Date: July 12, 2003




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Important Measures in June, 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 June 2003:

1.Following the amendment of "Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions", on April 30, 2003, the CBC issued "Instructions on Filling out the Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions" on June 11, 2003. The Instructions serve two purposes ¢w for a better understanding of the various items on the Declaration Statement, and to improve the accuracy of balance of payments statistics. The Instructions describe sequentially the procedure that must be followed to fill out the Declaration Statement and give examples of common errors that might occur while filling out the nature of the transaction. The CBC has asked each authorized foreign exchange bank to replicate the Instructions and then place the copies on their counters as a handy reference. In addition, for those banks authorized by the CBC to deal with foreign exchange business through Internet, they need to put the Instructions on their website for reference.

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

   1.Fubon Commercial Bank:Foreign Currency Cross Currency Swaps business.

   2.Mokoto Bank: Foreign Interest Rate Swaps business.

   3.International Bank of Taipei: Foreign Currency Cross Currency Swaps business.

   4.Taiwan Business Bank: NTD/FCY Options business.

   5.Bank of America, Taipei branch: FCY Structured Products business composed of NTD Interest Rate Swaps, FCY Interest Rate Swaps, FCY Interest Rate Option and NTD Interest Rate Option.

   6.Sumitomo Mitsui Banking Corp., Taipei Branch: NTD/FCY Options business.

   7.The Development Bank of Singapore Ltd., Taipei Branch: Foreign Currency Options business, NTD/FCY Options business.

3. Taiwan Cooperative Bank commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

4.Authorized 5 branches of 4 domestic banks to operate foreign exchange business. In addition, 8 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of May, there were 1,060 authorized foreign exchange banks, including 994 domestic banks and 66 foreign banks.