The Central Bank of Timor-Leste launched an official 100 centavos coin, with the objective of reducing the circulation of American coins in Timor-Leste.
“Today the president himself said a coin worth one dollar is the same as Timor’s 100 centavos coin,” said the Governor of the Central Bank of Timor-Leste (BCTL), Abrão de Vas Concelho.
The BCTL Governor said although Timor-Leste has a 100 centavos coin, the American dollar is still the official currency in Timor.
Previously, he said BCTL held an evaluation in 2011 with a technician about the use of the coin in Timor-Leste.
“We must have the 100 centavos coin to facilitate transactions in the economy and to reduce operational costs,” said the BCTL Governor.
Apart from this, in the launch ceremony there were also newly produced 25 centavos and 50 centavos coins, as some had already rusted.
He said, the new 100 centavos coins were produced in Portugal by the company YLCM, which previously produced the 10, 25 and 50 centavos coins.
Meanwhile President Tauk Matan Ruak said the BCTL transitioned from the Bank Payment Authority two years ago.
He said in 2000 UNTAET decided the American dollar would be the national currency for Timor.
Until 2001, UNTAET got rid of other coins and only used American coins.
“Today we’ve launched the 100 centavos coin, which completes the American coins in our nation,” said President TMR.
The President said the objective of using the coin was not only to avoid using American coins but also to facilitate the circulation of coins in the market for a long time.
On the other hand, Luta Hamutuk Director Mericio Akara congratulated the BCTL, as he said they were able to produce the coin without having a law on it.
Akara said BCTL also had not conducted research about the advantages and disadvantages of the coin.
“These are two things they have not yet done, but we still congratulate them.”
He said changing the American dollar did not only depend on the feeling in the country, but they should also think about global and regional markets.
“We would like tell the Central Bank that if they want to change from the American dollar, they should hold a deeper study about the market,” suggested Akara.
In response to the question, the BCTL Governor Abrão Vas Concelho said there was a law allowing the BCTL to produce the coin.
“Law number 5/2011, the Organic Central Bank Law, gives the exclusive authority to the Central Bank to produce coins,” he said.
