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.