Emerging Markets Rates and Currencies Handbook

195 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 Availability of the instrument Volume (MM USD daily) 2000 — 7000 5000-10000 Marginal 500 — 1500 Market liquidity varies from week to week 50 — 300 25 — 50 Market liquidity varies from week to week–/ 50 — 300 Max tenor (or typical tenor for spot) T+2 10 years 2 years 5 years 20 — 30 years 10y, 10y maturity for swaption’s underlying swap 10 — 30 years Typical deal size (MM USD) 20 — 30 25 — 100 Transactions are episodic 5 — 50 5 — 100 5 — 20 10 — 100 CitiFX Pulse Capabilities Convertibility Regulated for residents (i.e. natural and juristic persons) each onshore deal must be supported by a firm and ascertainable commitment and supported by relevant documentation. Market opening hours and liquidity during the day 08.00 09.00 Good Liquidity No Liquidity Moderate Liquidity 16.00 17.00 Fixing (incl. ticker) N/A. Regulation Offshore restrictions ZAR is quoted and is freely convertible offshore, however onshore entities (e.g South African residents, natural or juristic persons) are only permitted to transact with SARB appointed Authorised Dealers. Non-resident dealings • Non-residents may freely invest in South Africa, subject to documentary evidence to ensure transactions are concluded at arm’s length, are at fair market related prices and are financed in an approved manner. • No foreign exchange control restrictions apply to a foreign corporate dealing offshore. License requirements N/A. Requirements to open a foreign currency account Documentation required is dependent on the type of company and its incorporation. Deal Management Rollover: Yes — subject to exchange controls and MTM at prevailing market rate. Unwinding: Yes — subject to exchange controls and MTM at prevailing market rate. Early Maturity: Yes — subject to exchange controls and MTM at prevailing market rate. Documentation Requirements Product specific Specific to imports. Active currency Hedges <12m subject o providing documentary evidence to the Authorized Dealer at the time of ‘pay away’ confirming either the nature and extent of the commitment. Active currency Hedges >12m: a) documentary evidence of firm and ascertainable commitment where the required documentation is not available at the time of establishment of the hedge the documentation must be presented within 14 days. South African corporates may request for approval to cover 75% of forecasted exposures. An ISDA is required for forwards, options and all derivative trades. Trade flows This section relates to imports. 1) Commercial invoices issued by the supplier (2) Any one of the transport documents as prescribed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP 600) and its supplement for electronic presentation, the eUCP, South Africa