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) 7,000 - 10,000 N/A T+2 N/A 1 - 3 N/A 10,000 - 11,000 N/A 5 years N/A 5 - 10 N/A included in the offshore volume 8,000 - 9,000 1 year 1 year N/A 10 - 30 1,800 - 2,000* 800 - 1,000 2 years 3 years 10 - 30 20 - 40 8,500 N/A 20 years N/A 10 N/A 280 N/A 20 years N/A 10 N/A 250, included in Options volume* 5 20 years 10 years 5 - 15 5 - 10 CitiFX Pulse Capabilities    ✗ ✗ ✗ ✗ FX Spot including USDKRW and CNHKRW. FX Swaps including FX Swaps and Forwards. NDFs based on the sum of non-residents’ NDF (including ND Swap) buying and selling with domestic FX banks. *Includes both options and XCCY swap volumes as per BOK data. Source: Citi indicative information, BOK data Market opening hours and liquidity during the day Liquidity is best between 09:00 - 15:30 (onshore market hours). Outside those hours, KRW is convertible in the offshore market with less liquidity. Fixing The KRW fixing rate is the volume-weighted average of the rates applied in daily transactions, published daily at 15:45 Seoul local time. The rate is published as the basic rate of USDKRW for the next business day. It is available as KFTC18 on Reuters and KOBRUSD Index on Bloomberg. Regulation Offshore Restrictions: Residents or non-residents willing to make deposits or trusts in Korea or any other foreign country have to declare to the BOK (when exceeding U$50K per transaction) or to the corresponding FX bank (when within U$50K per transaction) except for the following cases: 1. Domestic: KRW deposits and trusts for domestic usage by Korean residents. 2. Offshore - Foreign currency deposits and trusts of any resident who sojourns in a foreign country. - Public loan, overseas derivative transactions, issuance of securities, securities investment, foreign currency deposits related to foreign direct investment. - Any foreign currency deposit and trust account is disposed of for the payment arising from qualified transactions. Non-Resident Restrictions: Transactions in KRW and/or other foreign currencies between residents and non-residents are subject to local FX regulation. Generally speaking, supporting documentation (i.e., underlying agreement, contracts, etc.) is required for the actual settlement of the transaction. At times, a declaration to or approval by local regulators is required.