Switzerland To Freeze Assets Of Deposed Tunisian, Ivory Coast Presidents
For those who were wondering why deposed Tunisian president Ben Ali recently pulled a ton (literally) of gold from the country's central bank, here is your answer: Reuters reports that Switzerland has just frozen all of his (paper) assets. Unfortunately, they have little access to his holdings of actual physical assets, such as the case may be, gold. And as we speculated when we discussed the curious case of deposed Ivory Coast's president Laurent Gbagbo (who in a clever scheme is using bondholders as leverage to legitimize his regime), that the world's largest cocoa exporter would be next to part with a substantial portion of its gold (which it does not technically have), this appears to be shaping up to be the case: Switzerland has also frozen assets of Ivory Coast president Laurent Gbagbo. Which also means that all those bondhodlers which were used as leverage by Gbagbo to legitimize his regime may be now irrelevant. Look for some interesting action in Cote D'Ivoire bond prices as a result of this development, demonstrating the curiously interconnected nature of globalized markets .
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