Emerging Markets Rates and Currencies Handbook

75 Citi | Emerging Markets Currencies Handbook 2021 Source: Citi indicative information Settlement may occur until there is availability of payment means in both the local and the foreign currency, usually at 16.00 local time for USDCLP transactions. Overdrafts are allowed only if the company has a credit line in place. Deliverable foreign exchange forwards are settled as spot trades upon maturity (T+0 — 24 or 49hrs both ccys). The BCCH maintains statistics of the inflow and outflows of currency and requires FX agents to report FX transactions. Convertibility Yes (as of March 2021). Market opening hours and liquidity during the day 09.00 14.00 13.30 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) The “Dolar Observado”, or just Observado, is the Chilean exchange fixing rate against the USD. It is the weighted average rate of the spot transactions traded on the formal exchange market between 9.00am and 1.30pm of the previous business day. The Observado is published daily by the BCCH around 18.30 of the previous day. Observado Bloomberg Ticker: {CLFXDOOB Index} Regulation Offshore restrictions Onshore and offshore markets are separated markets. We can manage the fixing execution of an offshore transaction in the onshore market as a way to replicate a delivery of an NDF transaction offshore. There are no constraints otherwise for an offshore counterparty to trade with local banks. Offshore counterparties can access the local spot market through Exempt Resolution 150. Non-resident restrictions Non-residents can operate in Chile through the Spot market under the regime of Exempt Resolution 36 (local tax authority) which implies having a local tax agent. There are no restrictions to operate through NDFs. On December 24th, 2020, the BCCH modified the compendium of Foreign exchange regulations, allowing the following cross border operations in CLP: As of March 1st, 2021: • Derivatives products with physical delivery in CLP. • Current accounts in CLP for Non-Domiciled and Non Resident investors. • Credits from persons domiciled or resident in Chile to persons domiciled abroad in CLP. As of Sep 1st, 2021: • Persons domiciled in or residing in Chile depositing or investing abroad. • Persons not domiciled or resident in Chile granting credits, deposits, investments and capital contributions in Chile. Chile FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 2000 — 3000 600 — 1000 2000 — 3000 5 100 — 150 N/A 10 — 20 Offshore volume (MM USD daily) N/A N/A 400 — 600 15 1000 — 1200 N/A 50 — 60 Onshore max tenor (or typical tenor for spot) T + 0/T+1/T+2 2 years 2 years 2 years 20 years N/A 30 years Offshore max tenor (or typical tenor for spot) N/A N/A 2 years 2 years (bespoke tenors can be tailored) N/A N/A 30 years Onshore typical deal size (MM USD) 3 — 5 3 — 5 3 — 5 2 15 N/A 20 Offshore typical deal size (MM USD) N/A N/A 3 — 5 12 50 N/A 50 CitiFX Pulse Capabilities (onshore) CitiFX Pulse Capabilities (offshore)