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) 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 250 - 500 Negligible T+3 T+2 5 - 10 N/A  20 - 50 N/A 2 years N/A 5 - 10 N/A  20 - 50 200 - 300 2 years 2 years 5 - 10 20 - 40  N/A Episodic N/A 1 year N/A 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 15 - 25 N/A 15 years N/A 5 - 15 ✗ Offshore CitiFX Pulse Capabilities  ✗  ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing The fixing rate most commonly used for the Peruvian Sol is the USDPEN interbank average exchange rate published by the Peruvian Central Banco — Banco Central de Reserva del Peru —, also known as “Tipo de Cambio Interbancario Promedio”. It is a weighted average of the interbank transactions larger than USD 500,000 executed in the local DATATEC system between 9.00am and 1.30pm. The fixing is published daily by the Central Bank at approximately 2pm local time. Bloomberg Ticker: {PEN SBSP Curncy} or BCDP command to open Central Banks Bloomberg’s site, where the rate can be found. Regulation Offshore Restrictions: Foreign investors are not subject to any restrictions regarding FX or money market transactions. There are also no restrictions on cash accounts or cash movements for foreign investors. Overdrafts are permitted for foreign investors, but they will require credit facilities to be in place. In order to comply with the foreign exchange settlement process, foreign investors are required to open a local currency account denominated in PEN. Non-Resident Restrictions: Onboarding required for clients before they can trade with Citi Peru. Resident Restrictions: Local regulatory limits for FX exposure There are some macro-prudential regulations limiting FX exposure for banks and pension funds. These limits can affect FX trading for professional players. Peru Banks’ FX net positioning should be between -10% (net short) of equity and +10% (net long) of equity. Also, the Central Bank imposed weekly limits and overall short forward portfolio for derivatives trading, linked to excess reserve requirements.