Emerging Markets Rates and Currencies Handbook

Taiwan (TWD - New Taiwan Dollar) Citi in Taiwan Citi is proud to have had a strong presence in Taiwan since the opening of our first representative office in 1964 and the first branch in Taipei in 1965. To expand our footprint in Taiwan, Citi acquired Bank of Overseas Chinese with the newly formed Citibank Taiwan Ltd (CTL) in 2007. Citi has been the leader in both corporate & investment banking and consumer banking. Market Overview TWD is a restricted currency and cannot be remitted out offshore. Any conversion involving TWD is governed by the Central Bank of the Republic of China (CBC). The CBC monitors foreign exchange markets in Taiwan, imposing a variety of practices to maintain the stability of foreign exchange rates. The TWD operates in a managed floating exchange rate regime. The common types of transactions include: Spot, Forwards, FX Swaps, Cross-Currency Swaps and Options. The Taiwanese foreign exchange market is two-tiered: interbank or wholesale market, and retail or client market. The market participants includes individuals, corporates, financial institutions, banks and the CBC. The two foreign exchanges brokers in Taiwan are the Taipei Foreign Exchange (TFEX) and Cosmos Foreign Exchange (COFX), through which all licensed financial institutions can do FX transactions. The TWD interest rate (IRS) market is an OTC market. The main market participants are banks, licensed security houses and the CBC. The common tenor is 1Y, 2Y, 5Y, 7Y and 10Y. Convertibility Yes, but regulated, as all FX conversion is subject to the possession of underlying supporting documents and there is a USD50mm per annum limit for non-trade related FX conversions for a resident corporate entity (FX swaps are exempted from this ceiling)); the limit may be subject to change at CBC’s discretion based on its assessment of Taiwan FX market situation. 51