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) 25 – 50 10 – 20 N/A N/A N/A N/A Negligible Offshore Volume (MM USD Daily) 5 - 10 5 – 10 0 – 5 N/A N/A N/A Negligible, settled on NDF basis Onshore Max Tenor (Or Typical Tenor T+2 1 year N/A N/A N/A N/A 1 year For Spot) Offshore Max Tenor (Or Typical Tenor T + 2 1 year 1.5 year N/A N/A N/A 5 years For Spot) Onshore Typical Deal Size (MM 0.5 – 5 0.5 – 5 N/A N/A N/A N/A 2 - 10 USD) Offshore Typical Deal Size (MM USD) 0.5 – 3 0.5 - 3 0 - 2 N/A N/A N/A Transactions are episodic CitiFX Pulse Capabilities   ✗ ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing There is no local fixing. Regulation Offshore Restrictions: Onshore entities (e.g. resident corporate) are not permitted to transact FX with an offshore entity (e.g. offshore bank). Under the IFEM Rules, all FX transactions must be made with BoZ Authorized Dealers. Onshore entities cannot fund (ZMW) to an offshore entity (e.g. offshore bank) for tenor less than one year. Non-Resident Restrictions: Non-resident (e.g. non-resident corporate) are permitted to transact FX with an onshore entity (e.g. onshore bank). There are no restrictions, however, the non-resident corporate must have an account with onshore bank. Any remittance of foreign currency by the non-resident must have supporting documentation, upon request, showing reason for the remittance. License Requirements All financial intermediaries conducting securities business in Zambia must be licensed by the SEC and all onshore dealing in securities must be done with a SEC licensed dealer as per the SEC Act. To transact securities, clients are required to have a CSD account to be held by their onshore bank. Requirements to open a foreign currency account Full KYC as per local regulation and Citi internal requirements. Foreign currency account can be credited with local currency. Deal Management Rollover: Yes. At prevailing market prices, tenor up to 1 year subject to credit limits. Unwinding: Yes. At prevailing market prices plus a cost. Early Maturity: Yes, cash settled. Netting can be agreed on bilateral basis. Zambia is a netting jurisdiction. Documentation Requirements For amounts greater than USD5,000 being remitted