Emerging Markets Rates and Currencies Handbook

202 Citi | Emerging Markets Currencies Handbook 2021 Tunisia 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) 5 — 15 2 — 10 N/A Marginal N/A N/A Bespoke hedge dependent Offshore volume (MM USD daily) 5 — 15 2 — 10 Marginal Marginal N/A N/A Onshore max tenor (or typical tenor for spot) T + 2 1 year N/A 1 year N/A N/A Offshore max tenor (or typical tenor for spot) T + 2 2 years 2 years 2 years N/A N/A Onshore typical deal size (MM USD) 0.1 — 0.5 0.1 — 0.5 N/A Transactions are episodic N/A N/A Offshore typical deal size (MM USD) 0.5 — 2 0.5 — 2 Transactions are episodic Transactions are episodic N/A N/A CitiFX Pulse Capabilities Market opening hours and liquidity during the day 08.00 16.00 Good Liquidity No Liquidity Fixing (incl. ticker) No fix. Regulation Dealing with Offshore restrictions No restrictions for offshore entities (non-resident entities/ Offshore corporates). Onshore entities (e.g. resident corporates) can deal with offshore banks. They are permitted to transact FX with it, for deals backed by commercial or financial transactions. Non-resident restrictions Non-resident entities (e.g. offshore corporates) can deal with onshore banks and it is permitted to transact FX with it. Subject to non-existent of a ‘Professional’ account with available sufficient balance. License requirements Products for import are free except those subject to authorization from the Ministry of Commerce. A license is mandatory for a local business to import goods from abroad that are subject to authorization, to be able to buy foreign currency. Requirements to open a foreign currency account Onshore entities (e.g resident corporates) may open Foreign currency accounts (so called ‘professional accounts). Non-resident entities may open Convertible Dinar Accounts (CTD) that can be credited by the equivalent of any Foreign Currency or CTD. Deal Management Rollover: Yes, through supporting documents (new instructions). Unwinding: Not possible. Early Maturity: Yes, with supporting documents. Local regulation allows FX Options, but markets are really illiquid. For the onshore market, Clients can only buy a FCY Tunisian Dinar option. Selling options is not allowed in onshore market. Documentation Requirements Product specific A General Investor is required to provide the following information/documentation on a pre-execution basis: 1. Confirmation of hedge purpose 2. Hedging (Forwards) transactions must be backed by commercial or financial transactions (e.g. invoice or purchase order, contract …); Hedging extension via justified reason/supporting documentations showing hedging status. Unwinding: supporting documents are required.