Emerging Markets Rates and Currencies Handbook

Yes, with supporting evidence to prove necessity of such early take-up. The original deal rate would be adjusted based on ETU swap points. Documentation Requirements For Resident accounts Spot: - Equal/Exceeding TWD 500k: Central Bank Declaration Form. - Equal/Exceeding USD 1mm equivalent: Central Bank Declaration Form and Supporting documents. - For Capital Flows/Foreign Direct Investment: Regardless of notional, must provide supporting documents as below: a. Standard Central Bank Declaration Form. b. Supporting documents (such as Government Approval, Intercompany Loan Agreement, Loan Funding Usage, Statement of Earning Distribution, and/or Statement of Dividend Calculation, etc.). Forward: - Regardless of notional, supporting documents are required when entering into transaction and at expiry. - Central Bank Declaration Form is also required at expiry if notional exceeds TWD 500k. Swap: - No supporting document is required when initiating the transaction per genuine needs. (Note: Supporting documents should be provided upon regulator’s request, if any). - In practice, supporting documents will be required for non-trade purpose transactions (e.g. intercompany loan or other special purposes) by regulator. - For example, in the case of intercompany loan, documents are required when entering into transaction and at expiry. For Non-Residential accounts Supporting documents are required for all FX conversions: - Power of Attorney (Power of Attorney translated into Chinese). - Central Bank Declaration Form. If the conversion exceeds USD 100,000: Prior approval from the Central Bank is required. For further information, please refer to: Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pco de=G0450009 Regulations Governing Foreign Exchange Business of Banking Enterprises https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pco de=G0450011 Additional Comments All TWD contracts must be based on genuine needs. Balance sheet hedging is allowed but hedge tenor must match the maturity of the underlying. Hedging of receivables/payables, inter-company loans supported by underlying documents is permitted. The CBC requires settlement of all TWD FX deals (i.e. neither non-settlement nor cancellation is allowed per central bank regulation). supporting documents such as loan agreement are required. Option: - Plain vanilla only (combination of vanilla options is not allowed). - Per local practice, regardless of notional, supporting Citi Taiwan 15FL, No 1, Songzhi Road, Xinyi District Taipei City, 11047, Taiwan FX Sales Contact: +8862 8726 9858