Emerging Markets Rates and Currencies Handbook

sharing XAF as common currency. The Exchange controls are regulated, and XAF convertibility even if guaranteed, is subject to appropriate underlying documentation. Banks can execute eligible outgoing transactions with their current needs (30% of incoming funds they are allowed to keep) and need to submit requests to Central Bank in order to get FX for all the other outgoing transactions. 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) 20 - 50 1 – 10 N/A N/A N/A N/A N/A Offshore Volume (MM USD Daily) 1 – 15 1 – 10 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 1 – 5 0.5 – 3 N/A N/A N/A N/A N/A USD) Offshore Typical Deal Size (MM 0.5 – 3 0.5 – 3 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 No Fixing done. Regulation Resident and Non-Resident Restrictions: Regulation Transfer commission rate to be applied by banks on transfer transaction outside the CEMAC zone may not exceed 1% of the amount of the transaction. It does not integrate the commission of the Central Bank. This transfer commission is capped at 0.5% for transfers of work income e. g: wages, fees, perdiem, allowances. The exchange rate of other currencies for transactions may not be less or more than 3% of the daily fixed rate communicated by BEAC in their websit e www.beac.int Incoming funds: no restriction - Spot transaction - Timelines: Instant - Regulatory directives: Banks must cede minimum 70% of what they receive from their clients i.e. export proceeds, services, cash call, grants etc. to the BEAC and are allowed to keep the 30% in order to execute client’s transaction to be processed in maximum 3 days. - As for Foreign Currency loan, 100% of the proceeds must be declared and cede to Central Bank (BEAC) in order for the Central Bank to approve the subsequent payment schedule at the time of reimbursement. Outgoing funds: Allowed but subject to appropriate underlying documentation. Spot transaction Supporting documentation required. Forward and Derivatives Forwards and Derivatives market is limited and transactions are subject to exchange control regulation (e.g. transaction should always be supported by a commercial or financial transaction).