Emerging Markets Rates and Currencies Handbook

FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Availability of the instrument Volume (MM USD Daily) Max Tenor (Or Typical Tenor For Spot) Typical Deal Size (MM USD)  750 - 1250 T+2 5—10  30 – 50 2 years 3 — 5 ✗ 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 CitiFX Pulse Capabilities   ✗ ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing The Central Bank publishes foreign exchange rates at 6.00 pm local time on their website. Bloomberg: USDBGN BNBK Curncy. Regulation Non-Resident Restrictions: Non-resident (e.g. non-resident corporate) is permitted to transact FX with an onshore entity. Offshore Restrictions: Trading BGN offshore is uncommon due to operational/settlement concerns and currency board provisions, i.e. Central Bank trades EURBGN with local banks. Nevertheless, BGN offshore market exists. License Requirements There are no specific license requirements. Bulgaria follows EU-wide regulations, which it also transposes into local law. Requirements to open a foreign currency account No specific requirements in respect to opening and operating with a foreign currency account. Local currency account can be credited/debited with local and foreign currency and vice versa. Deal Management Rollover: Yes, no specific guidelines for settlement, as agreed between counterparties. Unwinding: Yes, no specific guidelines for settlement, as agreed between counterparties. Early Maturity: Yes, no specific guidelines for settlement, as agreed between counterparties. Documentation Requirements No documentation required for up to spot. For transactions beyond spot, standard EU-wide documentation is required such as local law Treasury master agreement or UK-law ISDA. Trade Flows Any person initiating a cross-border transfer or payment to a third country, the amount of which is or exceeds BGN 30,000 or its equivalent in other foreign currency, shall submit to the payment service provider information and documents, as provided for in a joint ordinance of the Central Bank and the Ministry of Finance. Capital Flow and FDI No local law documentation requirements. Additional Comments Bulgarian Central Bank closely follows EU-wide regulations and directives and ECB’s policies. Treasury Master Agreement and UK-law ISDA are enforceable. As a rule, Citi has cash accounts opened for corporate clients. For other banks and professional counterparties with no account, Citi trades based on settlement instructions.