The Central Bank of China

PRESS RELEASE Release Date: March 9, 2002




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Important Measures in February, 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 February 2002:

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

(1) KBC Bank N.Y. Taipei Branch operates NTD/FCY Cross Currency Swaps business.

(2) Hua Nan Commercial Bank operates NTD/FCY Cross Currency Swaps business, Foreign Currency Cross Currency Swaps business , Foreign Currency Interest Rate Swaps business.

(3) Taiwan Business Bank commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

2.Approved Standard Chartered Bank Taipei Branch to commence Internet banking business involving foreign currencies.

3. Authorized 2 branches of 2 domestic banks and 1 foreign bank to operate foreign exchange business. In addition, 4 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of February, there were 988 authorized foreign exchange banks, including 921 domestic banks and 67 foreign banks.