CUBA DE-DOLLARIZES.
Cuba has abandoned the US dollar as a national currency alongside the peso. As of Nov. 8, the dollar is out and the convertible peso--faux dollars circulating on par with the dollar--is in. While the dollar still has a place in Cuba's international transactions, so does the euro, the Canadian dollar, and other hard currencies.
President Fidel Castro and top officials outlined the new monetary regimen Oct. 25. An official notice from Francisco Soberon, head of the Central Bank, said the dollar would cease to be legal tender in Cuba as of Nov. 8. Cubans as well as tourists must use only the convertible peso everywhere that payments have been required in dollars such as hotels, bars, restaurants, and taxis.
The euro continues to be acceptable in Varadero and other tourist resorts. Studies are underway to extend its use to other parts of the island. The peso continues to circulate at the current exchange rate of 26 to US$1.
Dollar holders were given until Nov. 14 to turn in their dollars for convertible pesos. After the deadline, said Soberon, Cubans could still exchange dollars but would have to pay a 10% surcharge to cover the costs and risks Cuba incurs from US aggression against Cuba's dollar use. Or, they could simply hold on to their dollars since there is no prohibition against their possession. Cubans may maintain dollar bank accounts and withdraw dollars without paying a surcharge.
Likewise, bank credit-card transactions are not subject to the surcharge nor are all other hard currencies. Remittances sent to Cuba from abroad have to be made in hard currencies.
US measures against the dollar
Soberon explained the reforms as a necessary defense against US measures to shut down Cuba's ability to manage its dollar assets.
The US has been pressuring foreign banks to refuse Cuban dollar deposits used to pay for imports and other obligations. The State Department set up the Pursuance of Cuban Assets Group to block the flow of dollars in and out of Cuba. In May, the Federal Reserve fined the Swiss banking group Union de Banques Suisses (UBS) US$100 million for allowing Cuba and three other blacklisted states to turn in old dollar notes for new ones.
Treasury and Federal Reserve officials suggested that Cuba was using the Swiss banks to launder drug money. What is certain is that Cuba needs dollars to pay for its imports of US agricultural products, valued so far at about US$1 billion since 2000. So, while the US government allows its exporters...
Para continuar leyendo
Solicita tu pruebaCOPYRIGHT GALE, Cengage Learning. All rights reserved.
