Important Measures in October 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 October 2005:

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

2.Approved Taiwan Business Bank to commence internet banking business involving foreign currencies.

3.Approved Chinatrust Commercial Bank to offer Structured Products composed of NTD/FCY Cross Currency Swaps linked with Option on NTD/FCY CCS, NTD IRS, FCY IRS, FCY IRO and NTS IRO.

4.Authorized 4 branches of 2 domestic banks to operate the foreign exchange business. In addition, 1 non-authorized foreign exchange bank was approved to sell/buy foreign currency banknotes and traveler¡¦s checks. As of the end of October 2005, there were 1,123 authorized foreign exchange banks, including 1,056 domestic banks and 67 foreign banks.