We now have details of the ‘capital controls’ which Cyprus intends to vote into law (sometime) today, thanks to star blogger @YiannisMouzakis:
It’s a remarkable set of restrictions on the usual nuts and bolts of the financial system – particularly given the final point:
- Restrictions in daily withdrawals
- Ban on premature termination of time savings deposits
- Compulsory renewal of all time savings deposits upon maturity
- Conversion of current accounts to time deposits
- Ban or restrictions on non cash transactions
- Restrictions on use of debit, credit or prepaid debit cards
- Ban or restriction on cashing in checks
- Restrictions on domestic interbank transfers or transfers within the same bank
- Restrictions on the interactions/transactions of the public with credit institutions
- Restrictions on movements of capital, payments, transfers
- Any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary for reasons of public order and safety
You are watching a series of restrictions of the functions that money can perform being carried out in a limited defined territory.
THIS IS AN ATTACK ON A STATE ISSUED CURRENCY.
IF IT SUCCEEDS THESE RESRICTIONS WILL BECOME SEMI PERMANENT.
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