Emerging Markets Rates and Currencies Handbook

167 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) Not available N/A N/A N/A N/A N/A N/A Offshore volume (MM USD daily) N/A N/A N/A N/A N/A N/A N/A Onshore max tenor (or typical tenor for spot) T + 2 N/A N/A N/A N/A N/A N/A Offshore max tenor (or typical tenor for spot) N/A N/A N/A N/A N/A N/A N/A Onshore typical deal size (MM USD) 0.5 — 2 N/A N/A N/A N/A N/A N/A Offshore typical deal size (MM USD) N/A N/A N/A N/A N/A N/A N/A CitiFX Pulse Capabilities Market opening hours and liquidity during the day 10.00 No Liquidity Good Liquidity 14.00 Note: On Friday, the market closes at 12.00 Fixing (incl. ticker) Central Bank fixing is published from Monday to Friday at 10.00 am on Reuters page BDL01. Regulation Offshore restrictions Onshore entity is permitted to transact FX with an offshore entity. As per local regulations, non-resident financial institutions are not allowed to hold local currency accounts. Thus, any transaction with an onshore financial institution involving local currency has to be related to a client request. As for local banks, overbought/oversold cap limit exists and is as follows: FCY/LCY cap is 1% of equity, FCY/FCY cap is 40% of equity. Non-resident restrictions Non-resident corporate can trade local currency with onshore financial institutions. This is subject to approvals and have accounts opened with a local branch. No justification document is required for the same. License requirements None. Requirements to open a foreign currency account No specific requirements. When opening an account for a new client, a customer activation form is needed; however when opening an account for an existing client, a letter from the client is sufficient. Deal Management Rollover: N/A. Unwinding: N/A. Early Maturity: N/A. Documentation Requirements Product specific In order to close an FX transaction with the treasury department at Citi Lebanon, a client is required to sign an “Agreement for Forward and Spot Exchange”. Spot/ Forward FX is done on account to account basis with the same branch. Only the signed confirmation is required after the transaction is completed. Forward contracts are not permitted in local currency. Trade flows LBP is only onshore as non-resident financial institutions are not permitted to hold an account in LBP. Capital flows/FDI No local law documentation requirements. Citibank N.A. Beirut Berytus Parks, Block A, 3rd Floor Park Avenue, Beirut Central District P.O. Box 11-1535 Beirut, Lebanon FX Sales Contact: +96 1196 2457 Note: Citigroup Inc. and any of its affiliates do not provide accounting, tax, or legal advice. Please seek advice from a relevant licensed advisor. Source: Relevant legislation, publicly available sources. Lebanon