The Central Bank of China

PRESS RELEASE Release Date: August 3, 2002




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Important Measures in July, 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 July, 2002:

1.On July 2, 2002, the CBC, at the request of the Securities Investment Trust and Consulting Association of R.O.C., agreed to increase the amount of fund by NT$100 billion for securities investment trust enterprises (SITEs) to raise in local market for foreign securities investment.

The original amount set on December 7, 2001 was NT$60 billion, also by request of the Securities Investment Trust and Consulting Association of R.O.C.

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

(1) JinSun International Bank operates Foreign Currency Cross Currency Swaps business, NTD/FCY Cross Currency Swaps business

(2)Chinatrust Commercial Bank operates Foreign Equity Options business, Foreign Commodity Options business.

(3) Asia Pacific Bank operates NTD/FCY Options Business.

(4) Bank of Taiwan operates Foreign Currency Options business.

(5)The Standard Bank of South Africa operates Foreign Currency Structured Deposits business, which is composed of Foreign Currency Time Deposits and Foreign Currency Options, Structured Product business, which is composed of Foreign Currency Time Deposits and FCY/FRA.

3.Approved Taiwan Business Bank, ABN-AMRO Bank to commence internet banking business involving foreign currencies.

4. Authorized 10 branches of 4 domestic banks to operate foreign exchange business. In addition, 23 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of July, there were 1,008 authorized foreign exchange banks, including 943 domestic banks and 65 foreign banks.