The Central Bank of China

PRESS RELEASE Release Date: December 9, 2003




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Important Measures in November 2003

In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) announced the following measures in November 2003:

   1. Approved ChiaoTun Bank to commence internet banking business involving foreign currencies.

   2.Approved the following Authorized Banks to operate new foreign exchange derivatives business:

1.Taipei Bank: Foreign Currency Structured Products business composed of Foreign Currency Time Deposits and Foreign Currency Interest Rate Options

2.The Farmer Bank of China: NTD/FCY options business, FCY Interest Rate Swaps business.

3.E. Sun Bank: Foreign Currency Structured Products business composed of Foreign Currency Time Deposits and FCY Options.

4.Credit Agricole Indosuez, Taipei Branch:Foreign Exchange Structured Products business composed of NTD Interest Rate Swaps, FCY Interest Rate Swaps and FCY Interest Rate Options.

  3.Authorized 3 branches of 2 domestic banks to operate foreign exchange business. In addition, 5 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of November, there were 1,073 authorized foreign exchange banks, including 1,006 domestic banks and 67 foreign banks.