Important Measures in May 2006
PRESS RELEASE Release Date: June 12, 2006
Important Measures in May 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 May 2006:
1.For the convenience of travelers passing through Kinmen/Matsu to and form the mainland via ”Mini-Three” and to compile the data for purchasing or selling Renminbi Bills conducted by Banking Enterprises Located in Kinmen amd Matsu, the CBC revised ”Directions for Purchasing or Selling Renminbi Bills Conducted by Banking Enterprises Located in Kinmen and Matsu” on May 15, 2006.
2.Approved Yuan Ta-Core Pacific Securities to operate CY IRS, FCY IRO, FCY Options on IRS, FCY Forward Rate Agreements, FCY Bond Forwards and FCY Bond Options.
3.Allowed the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC objection：
(1) Bank of Taiwan：FCY Structured products composed with Foreign Exchange Time Deposits linked with FCY Commodity Options.
(2) Hsinchu International Bank：FCY Structured IRS products composed with FCY IRS linked with FCY Options.
(3) KBC Bank N.V.：FCY Commodity Options.
4.Approved AIG Global Investment Consulting Corp. Ltd. to act as a single master agent for AIG Global Investment Fund Management Ltd. in offering and selling offshore funds in Taiwan.
5. Approved PCA Securities Investment Trust Corp. Ltd. to act as a single master agent for Prudential Asset Management (Singapore）Ltd. in direct offering and selling offshore funds in Taiwan.
6.Approved Fubon Life Insurance Co., Ltd. to operate investment-linked insurance business in foreign currencies.
7.Approved Fuhwa Securities to handle consigned trading of foreign securities, the settlement of the consignor’s money/securities and the receipt/payment of fees in NTD.
8. Authorized 4 branches of 3 banking enterprises to operate the full range of foreign exchange business. In addition, 5 branches of 4 banking enterprises were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of May 2006, there were 1,129 authorized foreign exchange banks, including 1,065 domestic banks and 64 foreign banks.