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) 10 – 30 1-5 N/A N/A N/A N/A N/A Offshore Volume (MM USD Daily) 1-5 1-2 N/A N/A N/A N/A N/A Onshore Max Tenor (Or Typical T+2 9 months N/A N/A N/A N/A N/A Tenor For Spot) Offshore Max Tenor (Or Typical T+2 9 months N/A N/A N/A N/A N/A Tenor For Spot) Onshore Typical Deal Size (MM 0 - 3 0.5 - 1 N/A N/A N/A N/A N/A USD) Offshore Typical Deal Size (MM 0.5 - 3 0.5 - 1 N/A N/A N/A N/A N/A USD) CitiFX Pulse Capabilities   ✗ ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing There is no local fixing. EURXAF is pegged at 655.957. It is a common practice to use ECB fixing to cross XAF and others currencies (Reuters reference ECBREF=). Regulation Offshore Restrictions: Onshore entity (e.g. resident corporate) is not permitted to transact FX with an offshore entity (e.g. offshore bank). The overbought limit cap for every currency is 15% of the total capital with the global cap at 45%. Offshore entity can trade local currency with other offshore entities, though this is not encouraged by the central bank. Offshore entities are allowed to sell FCY to support local activity. Purchase of FCY by offshore is subject to Central Bank approval and justification of underlying economic value. Non-Resident Restrictions: Non-resident (e.g. non-resident corporate) is not permitted to transact FX with an onshore entity (e.g. onshore bank). Non-resident can trade FX with onshore entity only when they are looking to buy XAF for their specific needs. Residents, unlike non-residents, are not allowed to hold a foreign currency account in CEMAC. However , the Bank of Central African States (the BEAC – Central Bank) may authorize residents to hold a foreign currency account, provided the account is not credited with FCFA or receives transfers from an FCFA account. License Requirements The banking license provides rights to undertake all the listed products (Spot, FWD, NDF, Swap, Options) as long as it is done in accordance with EXCON Regulation. Requirements to open a foreign currency account Subject to Central Bank approval for residents and FCY account cannot be credited with local currency. Allowed for non-residents and the balance of FCY account cannot be negative. Deal Management Rollover: Yes with supporting documents and valid reason. Settlement: Mark-to-mark at prevailing market rate or fixing of the day. Gross-settled/full-funds flow for FX spot.