Important Measures in September 2005

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 September 2005:
1. The Central Bank of China announced the ¡¨Directions for Governing Remittances to and from China Area, Purchasing or Selling Renminbi Bills and Foreign Exchange Bills Conducted by Banking Enterprises Located in Kinmen and Matsu¡¨ and released the ¡¨Directions for Governing Purchasing or Selling Renminbi Bills Conducted by Banking Enterprises Located in Kinmen and Matsu¡¨ on 3rd October 2005. Several financial institutions located in Kinmen and Matsu may now engage in purchasing and selling RMB banknotes.
Passengers of the Republic of China or the Mainland Area traveling inbound or outbound via¡§Mini-Three-Links¡¨ route in Kinmen and Matsu may exchange New Taiwan dollar for RMB banknotes at the Kinmen branch, Kinchen Mini branch and Matsu branch of Bank of Taiwan, the Kinmen branch and Kinchen branch of Land Bank of Taiwan, the Kinmen branch of Kinmen Credit Cooperative. However, verification of personal identifications and traveling documents are required. The cap for each trip is limited to RMB 20,000.

2. Approved Hsinchu International Bank to commence telephone banking business involving foreign currencies.

3.Approved Taiwan Cooperative Bank to commence internet banking business involving foreign currencies.

4.Approved Citibank Taipei Branch to operate Paper Gold Account and Gold structured account composed with FCY Options, FCY time deposit and Paper Gold Account.

5.Approved 3 non-authorized foreign exchange banks to sell/buy foreign currency banknotes and traveler¡¦s checks. As of the end of September 2005, there were 1,119 authorized foreign exchange banks, including 1,052 domestic banks and 67 foreign banks.