Meanwhile, the Beijing-based Bank of China said it was halting transactions from North Korea's Foreign Trade Bank.
Meanwhile, the state-owned Bank of China said it was halting transactions from North Korea's Foreign Trade Bank on Tuesday.
The US Treasury had warned financial institutions around the world to be wary of the risks of doing business with Foreign Trade Bank.
The Bank of China's suspension of business further complicates the ability of the Foreign Trade Bank, North Korea's main foreign exchange bank, to access a key financial market.
In March, the U.S. Treasury Department imposed sanctions against the Foreign Trade Bank, effectively cutting it off from the U.S. financial system and urged Beijing to do the same.
It said the Foreign Trade Bank had financed other banks and companies already targeted by sanctions, including assisting in millions of dollars in transactions for the Korean Mining Development Corp.
The US Treasury added the Foreign Trade Bank (FTB) of North Korea and Paek Se-bong, the chairman of a committee which it said oversaw production of ballistic missiles, to the sanctions list.
"Bank of China has sent North Korea's Foreign Trade Bank a notice that it has closed its account and has also halted all fund transfers related to this account, " Bank of China said on Tuesday.
Instead, they will all be made to through a mechanism -- the Inter-Republic Committee -- which even Secretary Madigan acknowledges is a "creature of the central government" and Vneshekonombank (V-Bank), the center's foreign trade bank.
The state-run Bank of China Ltd. has notified the Foreign Trade Bank of North Korea that its account or accounts were being closed and all financial transactions suspended, said a bank spokeswoman, reading a brief statement.
An award-winning documentary entitled "Follow the Money" produced by the Blackwell Corporation and aired nationwide on 12 July 1989 on PBS provided compelling evidence of how, for example, East Germany's Foreign Trade Bank played a key role in the financing of a terrorist attack on U.S. nationals.
CSOB, its foreign-trade bank, by the middle of next year, and large chunks of Komercni and Sporitelna by mid-2000.
Traditionally China's foreign-exchange and trade bank, it still has the largest presence abroad.
Massive U.S. trade deficits and foreign central bank dollar accumulation mean that much of the printed money winds up in foreign bank vaults, not U.S. shopping centers.
The restrictions on cash withdrawals remain in place, but the government is also going to allow exporters to open dollar bank accounts for foreign trade.
That means U.S. retail forex traders can trade on non-registered foreign bank forex platforms until July 16, 2011.
Gaining an extra 270 days to trade on a non-registered foreign bank platform can help many retail forex traders who are not otherwise ready to begin trading under the new CFTC rules, which include 50:1 margin on majors, 20:1 margin on minors, the hedging rule and no FDIC, SPIC or segregation protection.
The trade surplus leads to large inflows of foreign currency, which is bought up by the central bank in order to hold down the exchange rate.
Ideally, you could trade your fiat paper currencies for these gold-linked currencies at any bank that offers foreign exchange services.
So devalued is Zimbabwe's currency that the bank was forced to announce this week that it would allow some shops to trade in foreign exchange.
ECONOMIST: Can Zimbabwe's long-awaited power-sharing deal endure?
President Mikhail Gorbachev has no doubt been impressed by China's success in carrying out domestic economic liberalization and foreign trade reforms as well as establishing workable terms of agreement with the GATT, the IMF, the World Bank, and the Asian Development Bank (ADB) .
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