# US Dollar Adopted as Currency (January 2000)

URL: https://allhistories.com/timor-leste/timeline/2000-us-dollar-adopted-as-currency
Location: Dili, East Timor
Themes: main-event

In January 2000 the United States dollar became the official currency of East Timor under UNTAET, according to a press release cited on the administration's Wikipedia page. A Central Payments Office was established at the same time. The step gave the territory a single widely accepted currency while the banking system had to be rebuilt. The destruction of 1999 had left the banking system and much of the economy in ruins, and about 70 per cent of economic infrastructure was destroyed, according to the Wikipedia article on the economy. A stable, widely accepted foreign currency allowed donors, aid agencies and the new administration to pay salaries and contractors quickly. The dollar remains the currency of Timor-Leste today, supplemented by locally minted centavo coins. Dollarisation limits independent monetary policy. The larger long-term economic concern became the state's dependence on petroleum revenue, which led to the creation of the Petroleum Fund in 2005 and to ongoing debate on diversification. At this point in the timeline (2000), Sergio Vieira de Mello (1999 – 2002) was the United Nations Transitional Administrator, heading UNTAET.

## Why it matters
It gave the new territory a stable currency and still defines its monetary system.

Ruler at the Time: [Sergio Vieira de Mello](https://allhistories.com/timor-leste/rulers/sergio-vieira-de-mello)

## Sources
- [Wikipedia — United Nations Transitional Administration in East Timor](https://en.wikipedia.org/wiki/United_Nations_Transitional_Administration_in_East_Timor)
- [Wikipedia — Economy of Timor Leste](https://en.wikipedia.org/wiki/Economy_of_Timor-Leste)