Emerging Markets Rates and Currencies Handbook

19 Citi | Emerging Markets Currencies Handbook 2021 Market opening hours and liquidity during the day Liquidity is best between 0900 — 1530 (onshore market hours). Outside those hours, KRW is convertible in the offshore market with less liquidity. 15.30 09.00 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) The KRW fixing rate is the volume-weighted average of the rates applied in daily transactions, published daily at 1545 Seoul local time. The rate is published as the basic rate of USDKRW for the next business day. It is available as KFTC18 on Reuters and KOBRUSD Index on Bloomberg. Regulation Offshore restrictions Residents or non-residents willing to make deposits or trusts in Korea or any other foreign country have to declare to the BOK (when exceeding U$50K per transaction) or to the corresponding FX bank (when within U$50K per transaction) except for the following cases: 1. Domestic: KRW deposits and trusts for domestic usage by Korean residents. 2. Offshore • Foreign currency deposits and trusts of any resident who sojourns in a foreign country. • Public loan, overseas derivative transactions, issuance of securities, securities investment, foreign currency deposits related to foreign direct investment. • Any foreign currency deposit and trust account is disposed of for the payment arising from qualified transactions. Non-resident restrictions Transactions in KRW and/or other foreign currencies between residents and non-residents are subject to local FX regulation. Generally speaking, supporting documentation (i.e., underlying agreement, contracts, etc.) is required for the actual settlement of the transaction. At times, a declaration to or approval by local regulators is required. Required documents include: • Declaration of Deposit (or Trust) Transactions (Form No.7 — 1), Corporate Registration Certificate and any documents that can prove the exception cases for cases where the resident (other than institutional investors) conducts any deposit or trust transactions with foreign financial institutions. FX Spot* FX Forwards** NDFs*** FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 7,000 — 10,000 10,000 — 11,000 included in offshore volume 1,800 — 2,000**** 8,500 280 - 250, included in Options volume**** Offshore volume (MM USD daily) N/A N/A 8,000 — 9,000 800 — 1,000 N/A N/A 5 Onshore max tenor (or typical tenor for spot) T + 2 10 years N/A 1 year 20 years 20 years 20 years Offshore max tenor (or typical tenor for spot) N/A N/A 1 year 3 years N/A N/A 10 years Onshore typical deal size (MM USD) 1 — 3 5 — 10 N/A 10 — 30 10 10 5 — 15 Offshore typical deal size (MM USD) N/A N/A 10 — 30 20 — 40 N/A N/A 5 — 10 CitiFX Pulse Capabilities * Including USDKRW and CNHKRW ** Including FX Swaps and Forwards *** Based on the sum of non-residents’ NDF (including ND Swap) buying and selling with domestic FX banks **** Includes both options and XCCY swap volumes as per BOK data Source: Citi indicative information, BOK data South Korea