Emerging Markets Rates and Currencies Handbook

crawling peg regime. Interest Rate Rates trading is mostly concentrated in the cash market. Bonds/Bills issued by the Honduras Government and the Central Bank are mostly bought by the market participants (mainly Banks and Pension Funds) as a buy and hold strategy. There is no swap curve, as the market has not yet developed a floating rate benchmark. Banks usually rely on the repo and reverse repo market to address short term liquidity needs, as the secondary market for government securities is limited. 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) Offshore Volume (MM USD Daily) Onshore Max Tenor (Or Typical Tenor For Spot) Offshore Max Tenor (Or Typical Tenor For Spot) Onshore Typical Deal Size (MM USD) Offshore Typical Deal Size (MM USD) Onshore CitiFX Pulse Capabilities 40 – 90 N/A N/A N/A 1 N/A  Episodic N/A N/A N/A Episodic N/A ✗ Episodic Episodic 1.5 years < 1.5 year Episodic Episodic ✗ N/A N/A N/A N/A N/A N/A ✗ N/A N/A N/A N/A N/A N/A ✗ N/A N/A N/A N/A N/A N/A ✗ N/A Episodic N/A 10 years N/A Episodic ✗ Offshore CitiFX Pulse Capabilities  ✗ ✗ ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day • 09:00 — 16:00 Currency Market • 16:00 Market Closes Auction Process: • From previous day up to 09:00: Clients have to submit to Banks their request to participate in Central Bank's FX Auction. • 15:30 - 16:00 Central Bank notifies Banks about auction results. Fixing Benchmark Rate (incl. ticker) The benchmark rate to sell Honduran Lempira is the “Tipo de Cambio de Referencia” (TCR) published by the Central Bank of Honduras and which is derived from the weighted average of the Interbank Currency Market transactions executed on the previous day. Bloomberg Ticker: USDHNL Currency. Fixing: https: //www.b ch.hn/politica- institucional/politica-cambiaria/tipo-de-cambio-de- referencia Regulation Offshore Restrictions: No offshore entity can trade derivatives onshore. Onshore entities are allowed to trade offshore.