The Central Bank of China

PRESS RELEASE Release Date: January 13, 2004




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Important Measures in December 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 December 2003:

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

1.Fubon Bank: Foreign Exchange Structured Products business composed of NTD Interest Rate Swaps and FCY Interest Rate Derivatives

2.The Farmer Bank of China: NTD/FCY Cross Currency Swaps business.

3.Ta Chong Bank: Foreign Currency Interest Rate Swaptions business composed of FCY Interest Rate Swaps and FCY Interest Rate Options.

4.Chang Hwa Bank:NTD/FCY Options business.

5.DBS Bank, Taipei Branch:FCY/FRA business.

6.Bank of Panshin commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

   2.Authorized 3 branches of 2 domestic banks to operate foreign exchange business. In addition, 7 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of December, there were 1,074 authorized foreign exchange banks, including 1,007 domestic banks and 67 foreign banks.