Important Measures in March 2006
PRESS RELEASE Release Date: April 17, 2006
Important Measures in March 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 March 2006:
1.In line with the deregulation of futures transactions denominated in foreign currencies traded in the domestic market and permission granted to foreign investors to engage in Taiwan’s futures market for non-hedging purposes by the Financial Supervisory Committee on March 27, 2006, the CBC amended the text of ”Directions for Banking Enterprises on Assisting Customers to Declare Foreign Exchange Receipts and Disbursements or Transactions”. The amendments focused mainly on regulations related to foreign exchange settlement of futures transactions.
2.Approved Bank of Taiwan to commence foreign exchange business through internet instructions.
3.Approved KBC Bank, Taipei Branch to commence foreign exchange business through internet instructions.
4.Approved the following authorized banks to operate new foreign exchange derivatives business:
(1) Bank Of Overseas Chinese：NTD/FCY Cross Currency Swaps.
(2) The Shanghai Commercial & Savings Bank：NTD/FCY Cross Currency Swaps.
5.Allowed the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC objection:
(1) The Standard Bank of South Africa Ltd. Taipei Branch: Structured products composed with FCY Bonds linked with FCY Commodity Options.
(2) Bank Of Overseas Chinese: Structured products composed with NTD Times Deposits linked with FCY Options.
6.Approved Prudential Life Insurance Co., Ltd. to operate investment-linked insurance business in foreign currencies.
7. Approved Taiwan Securities Co., Ltd ，Yuan Ta-Core Pacific Securities Co., Ltd. and Grand Cathay Securities Co., Ltd. to handle consigned trading of foreign securities, the settlement of the consignor’s money/securities and the receipt/payment of fees in NTD.
8.Approved INVESCO Taiwan to handle private placement of offshore funds on behalf of clients.
9. Approved 21 branches of 4 banking enterprises to sell/buy foreign currency banknotes and traveler’s checks. As of the end of March 2006, there were 1,124 authorized foreign exchange banks, including 1,059 domestic banks and 65 foreign banks.