Cyprus banks to
reopen tomorrow with severe capital controls.
"The measures, which are supposed to be in effect for only a week but
could be extended, will bar electronic transfers of funds from Cyprus to
other countries. And individuals will not be allowed to take more than
3,000 euros cash outside the country, well below the current restriction
of 10,000 euros, or $13,000.
Credit and debit card charges will be capped at 5,000 euros per person
per month. And checks cannot be cashed, although they can be deposited."
Cyprus banks are like roach motels. Checks go in, but they don't come out.
"Despite those strictures, Cypriot authorities are bracing for as much as
10 percent of the 64 billion euros in deposits in the country’s banks
to be pulled out on Thursday. The cap on cash machine withdrawals will
rise to 300 euros from 100 euros.
And some experts predict a much bigger bank run whenever the controls are eventually lifted."
I bet. It's surreal that people allow government to ban them from accessing their own money.
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