Emerging Markets Rates and Currencies Handbook

address short liquidity needs, as secondary market for government securities is not deep enough. Citi makes market in short and long term rates as needed by corporate flows. In addition, during late 2020, the BCCR proposed a new regulation to start offering onshore NDFs. At Citi, we are currently working to launch this product during the second semester 2023. Convertibility Costa Rica has not yet developed a tradable floating benchmark (IRS). Banks rely on the repo and reverse repo market to address short term liquidity needs, as the secondary market for government securities is not deep enough. Citi makes market in short- and long-term rates as needed by corporate flows. FX Spot FX Forwards FX Options Interest Rate Swap Interest Rate Options XCCY swaps NDFs Market Overview Onshore Market  ✗ ✗ ✗ ✗ ✗ ✗ Offshore Market   ✗     Onshore Volume (MM USD Daily) 130 - 140 N/A N/A N/A N/A N/A N/A Offshore Volume (MM 15 - 25 5 -10 N/A Episodic Episodic Episodic 5 - 10 USD Daily) Onshore Max Tenor (Or Typical Tenor T+2 N/A N/A N/A N/A N/A N/A For Spot) Offshore Max Typically, up to 2 Tenor (Or Typical Tenor T + 2 Up to 2 years N/A N/A N/A N/A years, goes up to 5 on a case-by- For Spot) case basis. Onshore Typical Deal Size (MM 0.5 - 1 N/A N/A N/A N/A N/A N/A USD) Offshore Typical Deal Size (MM 0.1 - 0.5 3 - 5 N/A N/A N/A N/A 3 -5 USD) Onshore CitiFX Pulse  ✗ ✗ ✗ ✗ ✗ ✗ Capabilities Offshore CitiFX Pulse Capabilities ✗  ✗ ✗ ✗ ✗  Expected Onshore FDFs/NDFs: second semester 2023. Source: Citi indicative information Market opening hours and liquidity during the day Fixing Tipo de Cambio Ponderado MONEX: it is the weighted average of all transactions dealt in the interbank market (MONEX), published at the end of the day (used for derivatives’ fixing). Regulation Non-Resident Restrictions: None. Foreign investors are not subject to any restrictions regarding FX or cash transactions. Overdrafts are permitted for foreign investors provided credit facilities are in place with local agent. Offshore Restrictions: Recently, the BCCR (Central Bank of Costa Rica) published a new regulation allowing financial entities to offer onshore derivatives. At Citi, we are working to start offering onshore derivatives starting second semester 2023. Currently, offshore derivatives are available to our clients on a case-by case-basis under a referral model to close with counterparty Citibank N.A., Citibank London or Citibank Europe PLC. License Requirements Every single spot transaction has to be reported to the