The Central Bank of China

PRESS RELEASE Release Date: June 7, 2003




--------------------------------------------------------------------------------

Important Measures in May, 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 May 2003:

1.Following the amendment of the articles of "Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions", the Central Bank of China changed the text of the "Guidelines for Authorized Banks on Assisting Customers to Declare Foreign Exchange Receipts and Disbursements or Transactions" on May 7, 2003. In addition, the title of this document was renamed as "Guidelines for Banking Enterprises on Assisting Customers to Declare Foreign Exchange Receipts and Disbursements or Transactions". Meanwhile, the CBC voided several circular letters released previously.

2.Approved Bank of Overseas Chinese and Bank of America, Taipei Branch to commence internet banking business involving foreign currencies.

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

  1.Fubon Commercial Bank:FCY/FRA business.
  2.Bank of Kaohsiung : Foreign Currency Options business.
  3.Mokoto Bank : Foreign Currency Options business.
  4.International Bank of Taipei : NTD/FCY Cross Currency Swaps business.
  5.UFJ Bank Ltd., Taipei branch: Foreign Currency Structured Products business composed of Foreign Currency Time Deposit and Foreign Currency Options.
  6.The Development Bank of Singapore Ltd., Taipei Branch: Foreign Currency Interest Rate Swaps business, Foreign Currency Interest Rate Options business.
  7.The Hongkong and Shanghai Banking Corp. Ltd., Taipei Branch: Structured Products business composed of NTD Deposit and FCY Equity Option.
  8.Mizuho Corporate Bank Ltd., Taipei Branch: Structured products business composed of FCY Deposit and Foreign Currency Option.
  9.Bank of America, Taipei Branch: (a)FCY Interest Rate Swaption, Complex Interest Rate Swaps or FCY Inverse Floater Swaps, composed of FCY Interest Rate Swaps and FCY Interest Rate Option. (b) Extendible/Cancelable FCY Interest Rate Swaps composed of FCY Interest Rate and FCY Interest Rate Swaption. (c) Extendible/Cancelable Complex Interest Rate Swaps or Extendible / Cancelable FCY Inverse Floater Swaps, composed of FCY Interest Rate Swap, FCY Interest Option and FCY Interest Rate Swaption.
4.Chinfon Bank commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

5.Authorized 8 branches of 4 domestic banks to operate foreign exchange business. In addition, 2 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 1,055 authorized foreign exchange banks, including 989 domestic banks and 66 foreign banks.