The Central Bank of China

PRESS RELEASE Release Date: June 8, 2002




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Important Measures in May, 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 May, 2002:

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

(1) United World Chinese Commercial Bank operates Foreign Currency Interest Rate Swaps business, Foreign Currency Cross Currency Swaps business, NTD/FCY Cross Currency Swaps business, Foreign Currency Interest Rate Options business, Foreign Currency Options business, Foreign Currency Equity Options business, NTD/FCY Options business.

(2) Hua Nan Commercial Bank operates Foreign Currency Structured Deposits business, which is composed of Foreign Currency Time Deposits and Foreign Currency Options.

(3) The Chinese Bank operates Foreign Currency Options business.

(4) ABN-AMRO Bank, Taipei Branch operates Foreign Currency Structured Deposits business, which is composed of Foreign Currency Deposits and Foreign Currency Interest Rate Swaps and Foreign Currency Interest Rate Options.

(5) Bank SinoPac operates NT Dollar Structured Deposits business, which is composed of NT Dollar Deposits and Foreign Currency Options.

(6) Bank of Kaohsiung,, Central Trust of China, Sunny Bank, Cathy United Bank, Mokoto Bank commence the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

2. Approved Far Eastern International Bank and Pan Asia Bank to commence Internet banking business involving foreign currencies.

3. Authorized 3 branches of 2 domestic banks to operate foreign exchange business. In addition, 12 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of May, there were 997 authorized foreign exchange banks, including 931 domestic banks and 66 foreign banks.