Emerging Markets Rates and Currencies Handbook

FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Market   ✗  ✗ ✗  Offshore Market    ✗ ✗ ✗  Onshore Volume (MM USD Daily) 300 – 500 50 - 150 N/A 25 - 75 N/A N/A 25 - 75 Offshore Volume (MM USD Daily) 1 – 100 0 - 10 20 N/A N/A N/A Bespoke hedge dependent* Onshore Max Tenor (Or Typical Tenor T + 2 5 years N/A 5 years N/A N/A 5 years For Spot) Offshore Max Tenor (Or Typical Tenor T + 2 1 year 2 years N/A N/A N/A Bespoke hedge dependent* For Spot) Onshore Typical Deal Size (MM 5 – 15 10 - 30 N/A 2-10 N/A N/A 2-10 USD) Offshore Typical Deal Size (MM USD) 1 – 5 1 – 5 1 – 5 N/A N/A N/A Bespoke hedge dependent* CitiFX Pulse Capabilities   ✗ ✗ ✗ ✗ ✗ Note: MAD options are not quoted offshore. Local banks can only offer MAD options onshore to local resident clients as per the local regulations. *Can be also applied to long term NDFs. Source: Citi indicative information Market opening hours and liquidity during the day Fixing 3 Daily official Central Bank publications: Boundaries: Around 8.30am and 11:50pm (BAM/FX3). Mid-day fixing around 12.30pm (BAM/FX1) (Reuters). Regulation Offshore Restrictions: Onshore entity (e.g. resident corporate) is not permitted to transact FX with an offshore entity (e.g. offshore bank). This is due to regulatory restrictions: onshore banks are mandated by the regulator and responsible to ensure that resident corporates are in strict adherence with local regulatory requirements. Offshore entities (e.g. non-resident corporates) are allowed to trade with offshore entities (e.g. bank). Non-Resident Restrictions: Non-resident (e.g. non-resident corporate) hold convertible MAD account. Non-resident is permitted to transact FX with an onshore entity (e.g. onshore bank). However, Non-resident can only trade Spot FX (FX hedging transactions between onshore bank and a non- resident corporate are not allowed). License Requirements No license is required for foreign exchange transactions. Securities transactions do not require any license (except for securities traded in the Stock Exchange). Requirements to open a foreign currency account A FCY account cannot be credited by normal MAD. FCY account can only be credited by foreign currency or convertible MAD from offshore. Exporters are allowed to have an export FCY account (‘’CCPEX’’ account) where they can keep up to 70% of export receivables in foreign currency to pay for import or services in foreign currency. Deal Management Rollover: