Emerging Markets Rates and Currencies Handbook

145 Citi | Emerging Markets Currencies Handbook 2021 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) 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 tenor for spot) T + 2 9 months N/A N/A N/A N/A N/A Offshore max tenor (or typical tenor for spot) T + 2 9 months N/A N/A N/A N/A N/A Onshore typical deal size (MM USD) 1 — 5 0.5 — 3 N/A N/A N/A N/A N/A Offshore typical deal size (MM USD) 0.5 — 3 0.5 — 3 N/A N/A N/A N/A N/A CitiFX Pulse Capabilities Market opening hours and liquidity during the day 07.30 12.00 15.30 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) No Fixing done. 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. 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). Foreign Currency accounts FCY account is subject to Central Bank approval. Client submits a motivated request indicating purpose of the account with adequate supporting documentation which can evidence the need for FCY account onshore or offshore. • If client is a Resident, account opening is subject to approval by BEAC for 2-year maximum renewable. If client is a non-Resident, account opening is free. However, banks need to inform BEAC not more than 30-day after the opening of a Foreign Currency. License requirements No. Client needs to be a Citi Client (due diligence performed). Gabon