The Central Bank of China

PRESS RELEASE Release Date: April 12, 2003



Important Measures in March, 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 March 2003:

1.Approved the following Authorized Banks to operate derivates business:

Taishin International Bank operates FCY Interest Rate Options business.

Hsinchu Bank operates Structured Prudocts business which is composed of Foreign Currency Deposit and FCY Options.

Jinsun International Bank operates FCY Interest Rate Options business.

FuHwa Bank operates Principal Guaranteed NT Dollar Structured Deposits business which is composed of NT Dollar Time Deposit and FCY Options.

Bank of America, Taipei Branch operates NTD Quanto Interest Rate SwapWhich is composed of NTD Interest Rate Swap and FCY Interest Rate Swap.

Jpmorgan Chase Bank, Taipei Branch operates NTD Quanto Inverse Floating Rate Swap(NTD Interest Rate Swap linked with FCY Interest Rate Swap and FCY Interest Rate Option).

(7)Standard Chartered Bank, Taipei Bank operates Foreign Currency Structured Deposits business which is composed of any combination of Foreign Cureency Interest Rate swaps, Foreign Currency Interest Rate Options, Foreign Currency Interest Rate Swaptions.

(8)Deutsche Bank, Taipei Brahcn operates NTD Quanto Interest Rate Swap or Quanto Inverse Floating Rate Swap (any combination of NTD Interest rate Swap linked with FCY Interest Rate Swap, FCY Interest Rate Options and FCY Interest Rate Swaption).

2.Tainan Buseines Bank commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

3. Authorized 2 branches of Bank SinoPac to operate foreign exchange business. In addition, 21 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of March, there were 1,046 authorized foreign exchange banks, including 980 domestic banks and 66 foreign banks.