Important Measures in February 2006
PRESS RELEASE Release Date: March 17, 2006
Important Measures in February 2006
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 February 2006:
1. Approved Bank of America, Taipei Branch to commence foreign exchange business through internet instructions.
2. Approved First Bank to offer structured products composed with NTD/FCY Cross Currency Swaps Contract linked with NTD IRS, FCY IRS, FCY IRO and FCY IRO and NTD/FCY CCS.
3. Allow the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC objection:
(1) Calyon Corporate and Investment Bank, Taipei Branch: Callable NTD Quanto IRS Contract structured products composed with NTD IRS, FCY IRS, FCY IRO and FCY Interest Rate Swaptions.
(2) Bank SinoPac: Foreign currency structured products composed with Foreign Currency Time Deposits linked with FCY IRS and FCY Commodity Options.
(3) First Bank: Sructured products composed with FCY Time Deposits linked with FCY IRS and FCY Interest Rate Swaptions.
4. Approved Deutsche Securities Asia, Taipei Branch to handle consigned trading of foreign securities.
5. Approved 12 branches of 3 banking enterprises to sell/buy foreign currency banknotes and traveler’s checks. As of the end of February 2006, there were 1,124 authorized foreign exchange banks, including 1,059 domestic banks and 65 foreign banks.