UNTAET ends triple E. Timor currency trade

UNTAET ends triple E. Timor currency trade

JAKARTA (AFP): East Timor's days of triple currency trade were
brought to an end Monday as fines were introduced for businesses
caught trading in currencies other than the U.S. dollar.

Although the greenback has been the UN-administered
territory's official currency since January 2000, trade in the
Indonesian rupiah and Australian dollar has thrived, especially
in the villages and traditional marketplaces.

"The problem has been the shortage of U.S. coins," a spokesman
for the UN administration, Peter Biro, told AFP by phone from
Dili.

"Lower priced goods in the market are paid for with rupiah.
But we've had a large shipment of coins in the past few months so
we're beginning to see more nickels and dimes."

From Monday anyone caught trading in rupiah or the Australian
currency is liable to a fine of up to 5,000 dollars.

"As of today authorities are free to impose penalties for
anyone who trades in anything but U.S. dollars," Biro said.

East Timor's interim cabinet and now-disbanded national
council passed a regulation in July rendering trade in other
currencies liable for penalties from August 20.

Major companies and cafes have been informed that penalties
would apply as of Monday.

"This morning the cafes were making it clear to all the
customers that they had to pay in U.S. dollars. Yesterday I was
still paying in Australian dollars," Biro said.

"But there's no active arresting of the small man in the
street trading in rupiahs ... the rules are targeting the
business community."

He said Indonesia's central bank wants all rupiah to be
repatriated by year-end from the former Indonesian province.