Important Measures in April 2006
PRESS RELEASE Release Date: May 11, 2006
Important Measures in April 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 April 2006:
1.Approved Cathay United Bank to commence foreign exchange business through internet instructions.
2.Approved Citibank Taipei Branch to provide foreign exchange business through Product Distribution Platform.
3.Approved the following authorized banks and securities forms to operate new foreign exchange derivatives business:
(1) Barclays Bank PLC：NTD/FCY Cross Currency Swaps.
(2) MasterLink Securities Corp.：FCY IRS, FCY IRO, FCY Option on IRS, FCY Forward Rate Agreement, FCY Bond Forward and FCY Bond Option.
(3)IBT Securities：FCY IRS, FCY IRO, FCY Option on IRS, FCY Forward Rate Agreement, FCY Bond Forward and FCY Bond Option.
4.Allowed the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC’s objection:
(1) UBS, Taipei Branch: FCY Forward Rate Agreement.
(2) Barclays Bank PLC: FCY Forward Rate Agreement.
5.Approved Fuhwa Securities Investment Trust, Yuanta Securities Investment Trust to handle private placement of offshore funds on behalf of clients.
6. Authorized 3 branches of 2 banking enterprises to operate the full range of foreign exchange business. In addition, 6 branches of 3 banking enterprises were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of April 2006, there were 1,126 authorized foreign exchange banks, including 1,062 domestic banks and 64 foreign banks.