DOCSLIB.ORG

Activities and Financial Statements 2020

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Activities and Financial Statements 2020 ANNUAL REPORT ACTIVITIES AND FINANCIAL STATEMENTS 2020 BANCO DE PORTUGAL EUROSYSTEM Lisboa, 2021 • www.bportugal.pt Annual Report | Activities and Financial Statements 2020 • Banco de Portugal Av. Almirante Reis, 71 | 1150-012 Lisboa • www.bportugal.pt • Edition Communication and Museum Department | Accounting Department • Design Communication and Museum Department | Design Unit • Translation International Relations Department | Translation Unit • ISBN (online) 978-989-678-729-5 • ISSN (online) 2182-6080 Contents Message by the Governor | 4 Mission and values of Banco de Portugal | 7 Statutory bodies | 9 I Activity | 13 Executive summary | 15 1 Response to the COVID-19 pandemic | 25 1.1 Preserving monetary policy transmission and favourable financing conditions for the economy | 25 1.2 Protection of loans to households and firms | 28 1.3 Monitoring of financial institutions and relaxation of supervisory measures | 29 1.4 Functioning of payment systems and means of payment | 30 1.5 Monitoring the economic activity and the financial system | 31 1.6 Business continuity management | 33 1.7 Social responsibility | 34 2 Price stability in the euro area | 35 2.1 Monetary policy | 35 2.2 Asset management | 38 2.3 Payment systems and means of payment | 40 3 Safeguarding of financial stability | 44 3.1 Regulatory framework | 44 3.2 Stability of the Portuguese financial system | 45 3.3 Resolution | 53 3.4 Upholding the legality of the resolution and enforcement measures | 54 4 Knowledge creation and sharing | 55 4.1 Research | 55 4.2 Statistics | 56 5 Strengthening internal governance and organisation | 58 5.1 Internal governance | 58 5.2 Internal control and risk management | 59 5.3 Human resources | 60 5.4 Systems, technology, information management and security | 62 5.5 Accountability, communication and services to the public | 63 5.6 International cooperation | 67 5.7 Sustainability | 68 II Report and Financial Statements | 71 1 Management Report | 73 1.1 Balance sheet | 75 1.2 Profit and loss account | 87 2 Financial Statements and Notes | 94 3 External Auditors’ Report | 159 4 Report and Opinion of the Board of Auditors | 162 Message by the Governor It was with honour, enthusiasm and a commitment to public service that I took up my duties as Governor of the Banco de Portugal in July 2020. It was a determined return to a ‘home’ that I have known since 1993, in the belief that the Banco de Portugal should contribute responsibly and decisively to defining coherent national policies, taking advantage of its technical capabilities, its public intervention and its recognised reputational capital. And this spirit of service to the Republic is all 2021 will be decisive at international, national the greater at times of the greatest challenges, and internal level. of which the year 2020 was an unfortunate Europe should follow up on the important milestone. integration decisions taken in 2020. The role of The pandemic, caused by the COVID-19 virus, monetary policy will not be the same again, from put society’s and its institutions’ resilience to the coordination with budgetary policies to concern test. Measures hitherto unused nor seen on such with economic and environmental sustainability. a scale were adopted to contain a sanitary crisis Portugal must be prepared to resume economic that unleashed an unexpected and accentuated activity with the same vigour it went through decline in economic activity. The risks to the immediately prior to the pandemic. Maintaining financial systems were evident from very early the same demanding goals of social, economic on. The tensions in the financial markets had repercussions in the Banco de Portugal’s missions and financial convergence with the European of maintaining price stability and safeguarding the Union whilst leading Europe in terms of growth financial system’s stability. and in financial conditions. The Banco de Portugal’s mission was carried The Banco de Portugal will be a part of this out and its significance as central bank to the process, in the certainty that an innovative Republic was felt by the whole staff. There was no organisation that rejuvenates every year must other way. It is in the most difficult moments that be ready for these challenges. The Banco de our work, our reflections and our organisational Portugal’s mission is to transmit to the financial skills take on the greatest importance and dictate system in general and the banking system in the results that the Bank can achieve and thus particular the same objectives that Portugal contribute to Portugal’s development. needs to guarantee its place in the future. 2021 It was natural, as well as fundamental that the will be a turning point for the Banco de Portugal, Banco de Portugal should have taken part in with the definition and launch of its Strategic Plan preparing the national and international measures 2021-25, where issues of openness to society, aimed at mitigating the economic effects of the active participation in the recovery and resilience pandemic, namely through guaranteeing liquidity roadmap for Portugal and the recognition of and the flow of credit to households and firms, all internal resources will be central to complying provided for by a suitable financial system. with its mission. Additionally, the Banco de Portugal presented I am certain that the conditions exist to reinforce analytical and forecasting information on the role of the Banco de Portugal, as one of developments of the Portuguese economy, fulfilling the institutional pillars of the Republic. It has its responsibility in knowledge production and unique obligations and must take advantage sharing. of its excellent staff and technical and policy Internally, I was able to witness the capacity of the capabilities to serve the country, contributing to Banco de Portugal and its staff in adapting to the the development of Portugal and Europe. unexpected needs and challenges of the past few months. Everyone’s recent dedication has been a huge success. In the secure implementation and use of the instruments for distance working, as well as in planning the return to in-person work, which has been adapted to developments in the pandemic and brought to fruition as soon as possible. Mário José Gomes de Freitas Centeno 6 Activities and Financial Statements 2020 Activities and Financial Statements • Annual Report • Banco de Portugal Banco Mission and values of Banco de Portugal Mission with its mission. Independence requires a clear mandate, the impossibility of seeking or taking Banco de Portugal is the central bank of the instructions from third parties, the protection of Portuguese Republic. It is part of the European the status of members of decision-making bodies System of Central Banks and the Eurosystem, and financial independence; the Single Supervisory Mechanism and the Single Resolution Mechanism. Transparency and accountability – In compliance Banco de Portugal’s mission is to: with its tasks in the context of the Eurosystem, Banco de Portugal is accountable to the Portuguese • maintain price stability; Parliament, the government and society for what it • promote financial stability. does, and why and how it does it; Team spirit – Banco de Portugal’s staff act in Values accordance with the principles of mutual assistance, knowledge sharing, loyalty and transparency; Banco de Portugal’s values are: Social and environmental responsibility – Banco Integrity – Banco de Portugal’s staff place society de Portugal acts in a socially and environmentally and public interest at the centre of their action responsible manner, operating as a social actor and uphold high ethical standards; and advocate of corporate ethics. Competence, effectiveness, efficiency – Banco de Portugal employs highly qualified staff in its The conduct of Banco de Portugal’s staff is in business areas. Its governance model, internal accordance with high ethical standards enshrined organisation and processes use best practices as in Regulamento da Comissão de Ética e dos Deveres a benchmark; Gerais de Conduta dos Trabalhadores do Banco de Independence – Banco de Portugal is independent Portugal (Regulation of the Ethics Committee and in functional, institutional, personal and financial the General Duties of Conduct of the Employees terms, which is a prerequisite for compliance of Banco de Portugal). 7 Statutory bodies Board of Directors* 1 Governor Mário José Gomes de Freitas Centeno 2 Vice-Governor Luís Augusto Máximo dos Santos 3 Director Hélder Manuel Sebastião Rosalino 4 Director Luís Manuel Sanches Laginha de Sousa 5 Director Ana Paula de Sousa Freitas Madureira Serra * As at 31 December 2020. Carlos da Silva Costa ceased functions as Governor on 19 July 2020. 4 2 1 3 5 Board of Auditors* Chair Nuno Gonçalves Gracias Fernandes Members Member – Statutory Auditor Óscar Manuel Machado de Figueiredo Member Margarida Paula Calado Neca Vieira de Abreu Advisory Board** Governor Mário José Gomes de Freitas Centeno Vice-Governor Luís Augusto Máximo dos Santos Former Governors Carlos da Silva Costa Vítor Manuel Ribeiro Constâncio António José Fernandes de Sousa Chair of the Board of the Auditors of the Banco de Portugal Nuno Gonçalves Gracias Fernandes Chair of the Portuguese Banking Association Fernando Faria de Oliveira Chair of the Portuguese Treasury and Debt Management Agency (IGCP, E.P.E.) Cristina Maria Nunes da Veiga Casalinho Representatives from the Autonomous Regions Pedro Miguel Amaro de Bettencourt Calado Ethics Committee*** Chair Vítor Manuel da Silva Rodrigues Pessoa
Load more

Recommended publications
  • Development of a Knowledge Based Decision Support System for Private Sector Participation in Water and Sanitation Utilities
    FORSCHUNGS- UND ENTWICKLUNGSINSTITUT FÜR INDUSTRIE- UND SIEDLUNGSWASSERWIRTSCHAFT SOWIE ABFALLWIRTSCHAFT E.V. STUTTGART Carla Gonçalves Pinheiro Böhl Development of a Knowledge Based Decision Support System for Private Sector Participation in Water and Sanitation Utilities KOMISSIONSVERLAG OLDENBOURG INDUSTRIEVERLAG GMBH, MÜNCHEN 2007 D93 Bibliographische Information Der Deutschen Bibliothek Die Deutsche Bibliothek verzeichnet die Publikation in der Deutschen Nationalbibliographie; detaillierte bibliographische Daten sind im Internet über http://dnb.ddb.de abrufbar Carla Gonçalves Pinheiro Böhl Development of a Knowledge Based Decision Support System for Private Sector Participation in Water and Sanitation Utilities Forschungs- und Entwicklungsinstitut für Industrie- und Siedlungswasserwirtschaft sowie Abfallwirtschaft e.V. Stuttgart (FEI). München: Oldenbourg Industrieverlag GmbH, 2007. (Stuttgarter Berichte zur Siedlungswasserwirtschaft; Bd. 189) Zugl.: Stuttgart, Univ., Diss., 2007 ISBN 978-3-8356-3137-3 ISBN 978-3-8356-3137-3 © 2007 Alle Rechte vorbehalten Satz: Institut für Siedlungswasserbau, Wassergüte- und Abfallwirtschaft der Universität Stuttgart Bandtäle 2, 70569 Stuttgart (Büsnau) Druck: medien-fischer.de GmbH, Benzstr. 3, 70736 Fellbach Printed in Germany ACKNOWLEDGEMENTS As a Doctoral Candidate of the Faculty of Engineering of the University of Stuttgart (Germany) enrolled in the International Doctoral Program Environment Water (ENWAT) and the person authoring this dissertation, I wish to express my grateful thanks to Prof. Rott (University of Stuttgart) for his guidance and assistance during the research. Prof. Vermeer (University of Stuttgart) helped the research get started. Very special thanks are due to Prof. Marx (University of Stuttgart) and Prof. Bárdossy (University of Stuttgart): their explanations on how to model using composite programming have been most useful. Prof. David Stephenson (University of Botswana) for his invaluable inputs.
    [Show full text]
  • The Greek Anomaly: Three Bailouts and a Continuing Crisis
    THE GREEK ANOMALY: THREE BAILOUTS AND A CONTINUING CRISIS by MARKOS BEYS PAPACHRISTOU Submitted in partial fulfillment of the requirements for the degree of Master of Arts Thesis Adviser: Professor Elliot Posner Department of Political Science CASE WESTERN RESERVE UNIVERSITY January, 2017 CASE WESTERN RESERVE UNIVERSITY SCHOOL OF GRADUATE STUDIES We hereby approve the thesis/dissertation of Markos Beys Papachristou candidate for the degree of Master of Arts * Committee Chair: Elliot Posner Committee Member: Peter Moore Committee Member: Joseph White Date of Defense: December 9, 2016 * We also certify that written approval has been obtained for any proprietary material contained therein. To my Parents Christos and Patricia Papachristou Table of Contents 1. Introduction.......................................................................................................................1 2. Origins and Causes of the Greek Crisis.............................................................................7 2.1 Issues with the Greek Politics and Economics...........................................................7 2.2 Economics of the Greek Debt...................................................................................14 3. EU – ECB – IMF Bailouts of Greece..............................................................................20 3.1 Bailouts and Austerity Measures..............................................................................20 3.2 Cost of Austerity.......................................................................................................28
    [Show full text]
  • Europe Without the EU? by Filippo L
    Europe without the EU? by Filippo L. Calciano1, Paolo Paesani2 and Gustavo Piga3 Policy Brief 1 Introduction The aim of this paper is to conduct a simple albeit daring exercise in counterfactual history: we discuss what the consequences for European countries would be, in the midst of the current economic crisis, if the European Union did not exist. The EU is both a monetary union and a political and institutional union, and in this study we consider both aspects. As a monetary union, the EU manages the common currency, the euro, through the actions of the European Central Bank (ECB). As a political union the EU serves many purposes, the most important of which, with respect to the current economic crisis, is to provide a privileged forum to coordinate Member States’ anti-crisis policies. As a matter of fact, since the beginning of the cr isis, European leaders have held numerous European Council meetings as well as preparatory G-8 and G-20 meetings, confirming the urgent need for policy coordination and cooperation both at EU and international level. In this study we pose and answer the following two questions: 1. What would the consequences of the current crisis be for European countries if the euro had not been introduced ten years ago; that is, if European Monetary Union (EMU) had failed? 1 CORE, Université Catholique de Louvain-la-Neuve, and Department of Economics, University of Rome 3, email: fi[email protected]. 2 Department of Economics, University of Rome 2, email: [email protected]. 3 Department of Economics, University of Rome 2, corresponding author, email: [email protected].
    [Show full text]
  • Dissemination of Historical Time Series for The
    | Statistical Press Release | Lisboa, 20th October 2010 | Dissemination of historical time‐series for the Portuguese Escudo1 Banco de Portugal was created by a royal decree on 19 November 1846, as an issuing bank, entrusted with the “exclusive power to issue banknotes or bearer bonds in mainland Portugal”. After more than 160 years, during which three distinct monetary currencies have been adopted (real, escudo and euro), Banco de Portugal continues to guarantee the issue and putting into circulation of the national economy’s legal tender currency. It currently holds this function under the framework and operating regulations set out for the national central banks of the Eurosystem and the European System of Central Banks (ESCB), under the provisions of the Article 6 (1) of the Organic Law of the Banco de Portugal: “Under the provisions of Article 106 of the Treaty which institutes the European Community, Banco de Portugal issues banknotes, which are legal tender and have discharging power”. Under the provisions of Article 20 of the Organic Law “Banco de Portugal is the exchange rate authority of the Portuguese Republic” and, pursuant to the Article 13, “It is incumbent on Banco de Portugal the collection and compilation of monetary, financial, foreign exchange and balance of payments statistics, in particular within the scope of its co‐operation with the ECB”. In this framework, the Banco de Portugal has decided to collect all the information about the Escudo, available in various media, mostly on paper, and to make available to the public historical time‐series of the Escudo accompanied by metadata that contributes to a better understanding of its evolution since the late nineteenth century until the adoption of the euro by Portugal on 1 January 1999.
    [Show full text]
  • ANNEXURE I (Para 1.8)
    69 ANNEXURE I (para 1.8) Summary of detailed events in the run up to the EMU and EURO 1988 EMU Committee established (Delors Committee) 1989 Stage I of EMU begins with the publication of the EMU Report. 1992 The Treaty of European Union is signed at Maastricht. Inter-alia the treaty lays down the convergence criteria for EU members to join the EMU 1993 Treaty on European Union (Maastricht Treaty) ratified by member states. 1994 Stage II of EMU begins with the establishment of the EMI in Frankfurt. End of 1996 The Council reports that the convergence criteria have still not been achieved for January 1, 1997 to be the first possible date for launch of Stage III. March 25, 1998 The European Commission and the EMI recommend an 11-member EMU launch at Stage III in view of the high degree of sustainable convergence achieved by these countries. May 2, 1998 The council adopts recommendation for the 11-member EMU; appoints the ECB Executive Board and decides to adopt current central parities for fixing irrevocably, parities for the currencies of the EMU participants. January 1, 1999 Stage III A of the EMU. Euro will become a legal currency of EMU countries. The exchange rates of the currencies of participating states will be irrevocably locked; the value of ECU will be determined and converted to euros at the rate of 1:1. The ECB and ESCB will take control of the monetary policy. Open market operations, new public debt issues and foreign exchange payments will be in euros. Stock exchange quotes will be in euros.
    [Show full text]
  • Three Essays on European Union Advances Toward a Single Currency and Its Implications for Business and Investors Charlotte Anne Bond Old Dominion University
    Old Dominion University ODU Digital Commons Theses and Dissertations in Business College of Business (Strome) Administration Winter 1998 Three Essays on European Union Advances Toward a Single Currency and Its Implications for Business and Investors Charlotte Anne Bond Old Dominion University Follow this and additional works at: https://digitalcommons.odu.edu/businessadministration_etds Part of the Finance and Financial Management Commons, International Business Commons, and the International Relations Commons Recommended Citation Bond, Charlotte A.. "Three Essays on European Union Advances Toward a Single Currency and Its Implications for Business and Investors" (1998). Doctor of Philosophy (PhD), dissertation, , Old Dominion University, DOI: 10.25777/mc19-6f14 https://digitalcommons.odu.edu/businessadministration_etds/77 This Dissertation is brought to you for free and open access by the College of Business (Strome) at ODU Digital Commons. It has been accepted for inclusion in Theses and Dissertations in Business Administration by an authorized administrator of ODU Digital Commons. For more information, please contact [email protected]. Three Essays on European Union Advances Toward A Single Currency and its Implications for Business and Investors by Charlotte Anne Bond A dissertation submitted to the Faculty of Old Dominion University in partial fulfillment of the requirements for the degree of Doctor o f Philosophy (Finance) Old Dominion University College of Business Norfolk, Virginia (December 1998) Approved by: Mohammad Najand (Committee Chair) \ tee Member) Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UMI Number: 9921767 Copyright 1999 by Bond, Charlotte Anne All rights reserved. UMI Microform 9921767 Copyright 1999, by UMI Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code.
    [Show full text]
  • ECU-EMS Information : 4/1992 Monthly
    Theme 2 ISSN 1011-0844 Economy and finance Series Β Short-term trends eurostat ECU-EMS information 4 D 1992 Monthly THE PORTUGUESE ESCUDO HAS BEEN PARTICIPATING IN THE EMS EXCHANGE RATE MECHANISM SINCE 6 APRIL 1992. On Saturday, 4 April, the Portuguese authorities announced Since 6 April 1992 the Greek drachma has therefore been their intention to bring the escudo into the EMS exchange the only European Community currency which has not rate mechanism at a central rate of 180 escudos to the ecu been participating in the EMS exchange rate mechanism. and with fluctuation margins of 6% either way. In fact, the escudo entered the exchange rate mechanism on 6 April at On the euromarket, the Kingdom of Danmark launched at its former notional central rate of 178.75 escudos to the the end of March its long awaitted jumbo issue, for a total ecu. amount of ECU 1300 million (see page 5). It should be noted that the reference value for the escudo's On the domestic markets for ecu securities, 11 April saw entry into the exchange rate mechanism was considered the Italian Treasury issue a new 368-day ecu bill for ECU and expressed in relation to the ecu and not in relation to 500 million. any of the other currencies in the exchange rate mechanism. The British Treasury continued as usual with its programme of issuing one-, three- and six-month bills for a total of ECU As the escudo entered the exchange rate mechanism at a 1 000 million. On 21 April, however, the second issue in the central rate identical to its previous notional central rate, new British programme of three-year bills was for ECU 500 the only change in the new grid of bilateral central rates million (as against ECU 1 000 million on 24 January).
    [Show full text]
  • The Fate of the Euro
    The fate of the euro Vanguard Research July 2018 Peter Westaway, PhD; Alexis Gray; and Eleonore Parsley ■ The fate of the euro is not yet sealed. Despite flaws in its initial design, the euro is likely to survive with most, if not all, member states for many years given the strong political will for its existence. Based on analysis of current developments and of previous monetary unions, we believe that risks to the euro area come from two directions. Without further integration and better crisis management tools, there may be a partial or full breakup of the euro. But too much integration too quickly could lead to the same outcome. ■ The risk of an immediate “euro crisis” is low. Indeed, we place a 95% probability on the survival of the euro area over the next five years. We think a partial breakup is possible but also unlikely in the short term (0%–5%). ■ We are less sanguine about the outlook for 30 years and beyond. The chances of the euro’s survival with the full complement of existing members dwindles to around 60%–70%, with a meaningful 20%–30% chance of a partial breakup and a still meaningful 10%–15% chance of a full breakup. For professional investors only as defined under the MiFID II Directive. Not for public distribution. In Switzerland for professional investors only. Not to be distributed to the public. This document is published by The Vanguard Group, Inc. It is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.
    [Show full text]
  • Use of Euro in Affiliated Countries and Territories Outside the EU
    79 Use of Euro in Affiliated Countries and Territories Outside the EU Niels C. Andersen, Legal Affairs, and Niels Bartholdy, International Relations INTRODUCTION If Denmark's adoption of the euro is endorsed by the referendum in Denmark on 28 September 2000 it will be necessary to consider the cur- rency arrangements for the Faroe Islands and Greenland. Today they both use the Danish krone as their currency1. The Faroe Islands and Greenland are part of the Kingdom of Denmark, but are not members of the EU. Some of the present euro area member states have close economic relations with small states or territories which by tradition have used the present euro area member state's currency (e.g. the French franc) as their currency, but which are not members of the EU. The framework for the foreign-exchange cooperation between the euro area member states and these small states and territories after the introduction of the euro is set out in a number of EU decisions which are outlined in the following. A common feature of the EU decisions is that all of the small states and territories in question will have the opportunity to preserve the currency association to the euro area member state by using the euro as their currency. There is every indication that they will avail of this oppor- tunity. However, the more detailed legal arrangements between the individual euro area member states and the associated small states and territories remain to be clarified. Finally, the article describes two EU decisions on the currency relations between France and the CFA zone and the Comoro Islands, and Portugal and Cape Verde after the two EU member states' introduction of the euro.
    [Show full text]
  • The Euro: Internationalised at Birth
    The euro: internationalised at birth Frank Moss1 I. Introduction The birth of an international currency can be defined as the point in time at which a currency starts meaningfully assuming one of the traditional functions of money outside its country of issue.2 In the case of most currencies, this is not straightforwardly attributable to a specific date. In the case of the euro, matters are different for at least two reasons. First, internationalisation takes on a special meaning to the extent that the euro, being the currency of a group of countries participating in a monetary union is, by definition, being used outside the borders of a single country. Hence, internationalisation of the euro should be understood as non-residents of this entire group of countries becoming more or less regular users of the euro. Second, contrary to other currencies, the launch point of the domestic currency use of the euro (1 January 1999) was also the start date of its international use, taking into account the fact that it had inherited such a role from a number of legacy currencies that were issued by countries participating in Europe’s economic and monetary union (EMU). Taking a somewhat broader perspective concerning the birth period of the euro, this paper looks at evidence of the euro’s international use at around the time of its launch date as well as covering subsequent developments during the first decade of the euro’s existence. It first describes the birth of the euro as an international currency, building on the international role of its predecessor currencies (Section II).
    [Show full text]
  • A Memo on the Political and Economic Climate in Portugal As It
    A Memo on the Political and Economic Climate in Portugal as It Concerns the European Sovereign Debt Crisis John Mills & Dylan McKenna 1. Political History of Portugal: The current government of Portugal is relatively young. In 1974, the “Carnation Revolution” led to a regime change, allowing for the creation of a democratic republic in 1976, formally known as The Third Republic Democracy. The constitution of 1976 divided the political power into executive, legislative and judicial branches. The legislative body is the Assembly of the Republic and it is unicameral. The president is the head of state and commander-in-chief of the military and has veto power over bills, however the prime minister is chief executive of the Portuguese government. Portugal currently uses a multi-party system consisting of 19 different political parties, though elections are dominated mostly by the Socialist Party (left leaning) and the Social Democratic Party (center-right leaning). Portugal, a member of the EU since 1986, joined the EMU in 1999. Portugal has been using the Euro as its only currency since 2002. Portugal circulated Portuguese Escudo and used the Euro as “book money”, from 1999 until the full transition in January and February of 2002. From 2005 until 2011 the political power rested with the Socialist Party, led by Prime Minister José Sócrates. In March 2011 when his fourth package of austerity measures was rejected by opposition in the Assembly, Sócrates handed his resignation to Aníbal Cavaco Silva who dissolved parliament and called for early legislative elections. Between his resignation and the elections, Prime Minister Sócrates went on national television in April to announce that Portugal was facing bankruptcy and would ask for assistance from the IMF and the EFSF as Greece and the Republic of Ireland had already done.
    [Show full text]
  • Explaining the New Currency of East Timor
    Where can I change money and who determines the exchange rate? Banks and foreign exchange bureaus will provide money changing services. EXPLAINING THE The exchange rate will be determined by these institutions on the basis of supply and demand for the respective currencies. NEW CURRENCY The exchange rate may vary from one place to another. OF EAST TIMOR The Central Payments Office (CPO) will publish daily selected indicative exchange rates taken from the international financial markets. These rates will show how much the rupiah, Australian dollar, escudo, baht and Euro are worth against the US$. These rates will be posted daily in banks, airports, exchange bureaus and other public places. Questions and Will there be rules for businesses that exchange money? Yes. The CPO will license and supervise financial institutions, Answers about including currency exchange bureaus (cambio). Will East Timor have its own currency in the future and using the what will it be? The people and government of East Timor may eventually choose united states to establish their own currency, with whatever design and name. united states Until that time, the US$ will remain the legal tender. dollar (us$) UNTAET/OCPI UNITED NATIONS TRANSITIONAL ADMINISTRATION IN EAST TIMOR IC/02E 5,000 Feb 2000 Who will control prices? By Regulation 2000/7 of 24 January 2000, the United Prices will be determined through the principle of supply and demand, States dollar (US$) became the new legal tender in East and not by any government agency. Timor. This means that all official transactions must be carried out in US$. For example, payments of your For example, the price of bananas may rise if many people want to buy them (demand), but there are not enough bananas (supply).
    [Show full text]