Emerging Markets Rates and Currencies Handbook

218 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) 25 — 50 2 — 10 N/A N/A N/A N/A Negligible Offshore volume (MM USD daily) 5 — 10 0 — 5 0 — 5 N/A 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 1 year Offshore max tenor (or typical tenor for spot) T + 2 1 year 1.5 year N/A N/A N/A 5 years Onshore typical deal size (MM USD) 0.5 — 3 0.5 — 3 N/A N/A N/A N/A 2 — 10 Offshore typical deal size (MM USD) 0.5 — 3 0.5 — 3 0 — 2 N/A N/A N/A Transactions are episodic CitiFX Pulse Capabilities Market opening hours and liquidity during the day Good Liquidity No Liquidity Moderate Liquidity 09.00 08.30 15.30 Fixing (incl. ticker) There is no local fixing. Regulation Offshore restrictions Onshore entities (e.g. resident corporate) are permitted to transact FX with an offshore entity (e.g. offshore bank). There are no restrictions. However, onshore entities cannot fund (ZMW) to an offshore entity (e.g. offshore bank) for tenor less than one year. Non-resident restrictions Non-resident (e.g. non-resident corporate) are permitted to transact FX with an onshore entity (e.g. onshore bank). There are no restrictions, however, the non-resident corporate must have an account with onshore bank. Any remittance of foreign currency by the non-resident must have supporting documentation showing reason for the remittance. License requirements No license required for all FX dealings and securities transaction. However, for the latter a CSD account will need to be opened with the central bank. Requirements to open a foreign currency account Full KYC as per local regulation and Citi internal requirements. Foreign currency account can be credited with local currency. Deal Management Rollover: Yes. At prevailing market prices, tenor up to 1 year subject to credit limits. Unwinding: Yes. At prevailing market prices plus a cost. Early Maturity: Yes cash settled, Zambia is not a netting jurisdiction. Documentation Requirements Product specific For amounts greater than USD5,000 being remitted outside the country, proof of payment must be provided to the bank. Trade flows For amounts greater than USD5,000 being remitted outside the country, proof of payment must be provided to the bank. Capital flows/FDI No restrictions, however the regulator encourages transacting with local counterparties. Additional Comments Since June 2020, mining companies are required to pay all taxes in USD (previously paid in LCY) directly to the Central Bank. This has led to USD liquidity challenges in recent months on the forex market as mining tax inflows were a significant source of forex supply. Citibank Zambia Limited Stand No. 4646 Addis Abba Roundabout, P.O. Box 30037, Lusaka, Zambia FX Sales Contact: +2602 1144 4400 Zambia