The Central Bank of China

PRESS RELEASE Release Date: September 14, 2002




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Important Measures in August, 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 August, 2002:

1.The amount of US Dollar seed funds for the Taipei foreign currency call-loan market has been increased from UD$10 billion to US$20 billion since August 16, 2002.

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

(1)Cathay United Bank operates NTD/FCY Options business.

(2)Chang Hwa Bank operates Foreign Currency Options business, Foreign Currency Interest Rate Options business, Foreign Currency Equity Options business.

(3)Bank of Taiwan operates Foreign Currency Structured Deposits business, which is composed of NTD/FCY Options , Foreign Currency Time Deposits , Foreign Currency Options and commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

(4)Sumitomo Mitsui Banking Corporation operates NTD/FCY Cross Currency Swaps business.

3. Authorized 6 branches of 2 domestic banks and 1 foreign bank to operate foreign exchange business. In addition, 15 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of August, there were 1,015 authorized foreign exchange banks, including 949 domestic banks and 66 foreign banks.