Emerging Markets Rates and Currencies Handbook

142 Citi | Emerging Markets Currencies Handbook 2021 *Can also be applied to long term NDFs Source: Citi indicative information FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 200 — 300 10 — 40 N/A N/A N/A N/A Bespoke hedge dependent* Offshore volume (MM USD daily) N/A N/A 20 — 30 N/A N/A N/A Onshore max tenor (or typical tenor for spot) T + 2 1 year N/A N/A N/A N/A Offshore max tenor (or typical tenor for spot) N/A N/A 1 year N/A N/A N/A Onshore typical deal size (MM USD) 1 — 20 1 — 5 N/A N/A N/A N/A Offshore typical deal size (MM USD) N/A N/A 2 — 5 N/A N/A N/A CitiFX Pulse Capabilities Convertibility Foreign Exchange transactions (RHS) in Egypt must be backed by genuine commercial transaction. Underlying documentation (trade related, dividend payments, repatriation of funds) have to be presented prior to execution. Payments between Egyptian entities in Egypt have to be done in local currency, unless under certain non- exhaustive exceptions specified in the banking law apply. Capital inflows and outflows transactions are considered commercial transactions. NDF is not allowed by the regulator. Hedging Hedging: only available tool is FX forwards (LHS). LHS Deliverable FX forwards are only allowed for export proceeds on case by case basis (Central Bank approval), documentation to be provided before execution. Market opening hours and liquidity during the day** 10.00 12.00 13.30 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) FEMF1 page on Reuters 11.00, 12.30 and 14.00. This is an EGP FX fixing rate published independently by the Central Bank of Egypt on Reuters three times a day, and the final Fix is published at 2 pm Cairo Local time. Regulation Offshore restrictions EGP is not traded offshore, and cannot be lent to offshore entities. Non-resident restrictions Non-resident entities can open EGP account only in case there is an underlying project operating in Egypt. License requirements FX Forwards/Derivatives: Specific authorization in the commercial register to deal in these products. Requirements to open a foreign currency account Legal documentation, account opening documentation, and instruction specifying the currency sub account required. Deal Management Rollover: Permitted subject to product and risk approval, in addition to regulatory approval (if required). Unwinding: Permitted subject to product and risk approval. Early Maturity: Permitted subject to product and risk approval. Documentation Requirements Product specific For foreign exchange Spot and Forward transactions, the underlying documentation proving the commercial transaction is required (trade related documents, invoices, dividend payments, repatriation of funds to headquarters). Egypt