Emerging Markets Rates and Currencies Handbook

161 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) 30 — 40 0 — 10 N/A N/A N/A N/A N/A Offshore volume (MM USD daily) 10 — 20 0 — 10 0 — 10 N/A N/A negligible settled on NDF basis Onshore max tenor (or typical tenor for spot) T + 2 1 year N/A N/A N/A N/A N/A Offshore max tenor (or typical tenor for spot) T + 2 1 year 1 year N/A N/A 5 years Onshore typical deal size (MM USD) 0.5 1 N/A N/A N/A N/A N/A Offshore typical deal size (MM USD) – /3 –/3 –/3 N/A N/A episodic CitiFX Pulse Capabilities Market opening hours and liquidity during the day 09.00 16.00 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) There is no benchmark in the country. Regulation Offshore restrictions Onshore entity (e.g. resident corporate) is permitted to transact FX with an offshore entity (e.g. offshore bank). There are no restrictions to price KES outside the country subject to the following: There are restrictions on Kenya Shilling funding: • Onshore entities are not allowed to fund offshore counterparties for tenors less than one year. This encompasses funding in all forms of transactions as well as overdrawn accounts. Non-resident restrictions Non-residents (e.g. non-resident corporates) are permitted to transact FX with an onshore entity (e.g. onshore bank). License requirements No license requirement to transact FX Spot. For securities, a Central Depository System (CDS) account is required. Requirements to open a foreign currency account Foreign currency accounts are permitted. Accounts are opened after completion of documentary requirements. Deal Management Rollover: All types are permitted. Gross settled. Unwinding: All types are permitted. Early Maturity: No restrictions but not common market practice. Documentation Requirements Product specific No documentation required for FX conversions although supporting documentation is required for outgoing foreign currency payments of $10,000 (equiv.) and above. For outgoing foreign currency payments done electronically, of amounts above USD 10,000, supporting documentation may be deferred (subject to indemnification) but must be provided upon request. Supporting documentation is compulsory for both incoming and outgoing payments of USD 7million and above. Capital flows/FDI No local law documentation requirements. Additional Comments NDFs, Options and Cross Currency Swaps are permitted but have little activity in country and are mostly illiquid. Citibank N.A. Upperhill Road, Citibank House BOX 30711-00100 Nairobi, Kenya FX Sales Contact: +2542 0275 4088 Kenya