UN pushes U.S. dollar as E. Timor currency<\/p>\n
DILI (AP): The UN administration in East Timor announced plans
\nFriday to push for the enforcement of the U.S. dollar as the
\nofficial currency in the territory.<\/p>\n
The head of the UN Central Payments Office, which manages East
\nTimor's tiny and shattered economy, told reporters the world body
\nwas taking legal and educational steps to ensure the currency
\nbecomes the sole legal tender.<\/p>\n
\"In order to address the implementation of the dollarization
\nmore fully, a program has been developed (which) will have
\npolitical, legal and operational elements,\" said Fernando
\nDePeralto.<\/p>\n
The UN has governed the territory since a 1999 vote for
\nindependence from Indonesia, which occupied East Timor in 1975.<\/p>\n
In January 2000, the UN administration introduced the U.S.
\ndollar as the official currency in East Timor. A dozen countries
\nand territories around the world already use the U.S. currency,
\nincluding El Salvador, Ecuador, Guatemala and Panama.<\/p>\n
However, despite the UN decision, the Indonesian rupiah and
\nAustralian dollar have remained in widespread circulation in the
\nterritory.<\/p>\n
Although the world body pays its staff in U.S. dollars, many
\nAustralian-run businesses prefer to price goods in the Australian
\ncurrency. And many East Timorese continue to use rupiah to buy
\ncheap Indonesian goods.<\/p>\n
DePeralto said he hoped a campaign to educate people about the
\nU.S. dollar would encourage its greater use.<\/p>\n
Hundreds of thousands of coins - including almost 100,000
\ncents - will be imported to facilitate commerce.<\/p>\n
The import of foreign currencies will also be prohibited,
\nDePeralto said.<\/p>\n
The UN also will ban unlicensed money changers. They illegally
\nbring in rupiah into East Timor to exchange for U.S. dollars,
\nwhere the rates are lower than in Indonesia.<\/p>\n
U.S. dollars are then smuggled back into Indonesia.<\/p>\n
DePeralto warned that some inflation was inevitable. \"Shifting
\nfrom one currency to another with different denominations will
\ncreate inflation,\" he said.<\/p>\n
The push to enforce the use of U.S. dollars is likely to anger
\nthe some 400 moneychangers who work on the streets of Dili.<\/p>\n
\"Young people change money because they don't have real jobs.
\nIf the UN wants us to stop, they have to give us a salary,\" said
\nJohn da Silva, a currency dealer.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/un-pushes-us-dollar-as-e-timor-currency-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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