The Central Bank of China

PRESS RELEASE Release Date: October 5, 2002




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Important Measures in September, 2002


In line with the policy of liberalization and internationalization, and for further development of foreign exchange business, the Central Bank of China (CBC) took the following measures in September, 2002:

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

(1)Asian Pacific Bank operates Foreign Currency Options business.

(2)The Farmers Bank of China commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

(3)Chang Hwa Bank operates three kind of Foreign Currency Structured Deposits business, namely Foreign Currency Time Deposits and Foreign Currency Options, Foreign Currency Time Deposits and Foreign Currency Interest Rate Options as well as Foreign Currency Time Deposits and Foreign Currency Equity Options.

(4)Sumitomo Mitsui Banking Corporation operates Foreign Currency Interest Rate Swaps business.

2.Authorized 9 branches of 4 domestic banks to operate foreign exchange business. In addition, 6 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of September, there were 1,024 authorized foreign exchange banks, including 958 domestic banks and 66 foreign banks.