Emerging Markets Rates and Currencies Handbook

97 Citi | Emerging Markets Currencies Handbook 2021 Market opening hours and liquidity during the day • 09:00 — 10:00 Auction Market offer reception. • 09:00 — 12:30 Interbank Currency Market. • 16:30 Market Closes. 16.30 09.00 12.30 Good Liquidity No Liquidity Moderate Liquidity Benchmark Rate (incl. ticker) The benchmark rate to sell Honduran Lempira is the “Tipo de Cambio de Referencia” (TCR) published by the Central Bank of Honduras and which is derived from the following transactions executed on the previous day: Currency Auction, Interbank Currency Market, Currency used by banks on the market to cover their own demand and sale to their clients. Bloomberg Ticker: USDHNL Currency Fixing: https://www.bch.hn/politica-institucional/politica- cambiaria/tipo-de-cambio-de-referencia Regulation Offshore restrictions No offshore entity can trade derivatives onshore. Onshore entities are allowed to trade offshore. Non-resident restrictions Foreign entities are not allowed to trade derivatives or cash transactions; they have to open local bank accounts in order to transact, and in order to open the account they have to operate in the country. FX transactions are allowed. License requirements All FX transactions have to be reported to the Central Bank by financial institutions at the end of the day. Corporates are required to report and comply with regulation regarding repatriation of foreign currency related to exports. Requirements to open a foreign currency account Only local companies with presence or operations in the country are allowed to open USD or EUR accounts. Deal Management Rollover : Rollovers are possible for NDFs and are net settled. Unwinding : Possible to unwind NDFs, they are net settled. Early Maturity : Possible, net settled. Documentation Requirements Product specific FX Spot: For spot Transactions lower than 1MM USD, no local law documentation is required. Only legal entities and not individuals can participate on FX auctions. In order to participate they need to fill out a form required by the Central Bank. NDF (on-shore): At the time only Non-Deliverable Forwards (NDF) are locally traded. A NDF Contract has to be signed with Citi’s subsidiary in Honduras. Although no maximum tenor is established, due to limited liquidity tenor is usually below 1.5 years. Honduras FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 80 — 95 Episodic Episodic N/A N/A N/A N/A Offshore volume (MM USD daily) N/A N/A Episodic N/A N/A N/A Episodic Onshore max tenor (or typical tenor for spot) T + 0 T + 1 < 1.5 year < 1.5 year N/A N/A N/A N/A Offshore max tenor (or typical tenor for spot) N/A N/A < 1.5 year N/A N/A N/A 10 years Onshore typical deal size (MM USD) 1 Episodic Episodic N/A N/A N/A N/A Offshore typical deal size (MM USD) N/A N/A Episodic N/A N/A N/A Episodic CitiFX Pulse Capabilities Source: Citi indicative information

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