[Marxism] Higher Exchange Rate of Cuban Currency
walterlx at earthlink.net
walterlx at earthlink.net
Sat Mar 26 07:53:44 MST 2005
Please observe the continuing changes in Cuba's economic
situation, including both the re-valuation upwards of the
regular Cuban peso [aka "Moneda Nacional" or "MN"], as well
as the further devaluation of the U.S. dollar [aka "USD"
as they call it in Cuba], AND the latest development, the
de-linking of the Convertible Cuban pesos ["CUC"]from the
These developments, along with steps previously declared
to begin inside the island to improve the standard of
living of the Cuban people, from the distribution of the
rice-cookers, the pressure cookers and the repairs which
are to be made in refrigerators, reflect, in really direct
ways, which EVERY CUBAN WILL SEE IN THEIR OWN HOME, of the
turn in the island's economic situation.
These are indications of the Cuban leadership's attempts to
cushion the Cuban people from the international crisis we
see the capitalist world experiencing. How many times have
we heard the expression "bowing down before the almighty
dollar"? Well, those who do that are finding that they will
experience the same social and economic traumas which the
United States is increasingly having. Only a revolutionary
govenment which has control over the levers of national
economic power can take the steps indicated in this report.
CubaNews is doing everything we can to being you all of the
reports and on these developments as quickly as possible.
Skilled translators continue to be necessary and their work
will be compensated by our boundless appreciation!
Walter Lippmann, CubaNews
Higher Exchange Rate of Cuban Currency
Stems from Economic Realities
Havana, March 25 (AIN) Economic and financial realities
determined the announcing of an 8% increase in the exchange
rate of the Cuban Convertible Peso and the Cuban Peso in
relation to the US dollar and other foreign currencies starting
next April 9.
During Friday evenings popular radio and TV show The Round
Table, Francisco Soberon, Minister-President of the Central
Bank of Cuba gave a detailed explanation of the reasons that led
to the decision, contained in Agreement No. 15 of the banks
Monetary Policy Committee, announced Thursday evening by Cuban
President Fidel Castro, during a special address at Havana's
Palacio de las Convenciones.
As informed then, the increase in the exchange rate will not
affect accounts in foreign currencies already existing in Cuban
banks, or new ones that might be opened before April 9.
The rise comes to add up to a March 18 Central Bank of Cuba
decision that devalued the US dollar to 24 Cuban pesos for
buying operations and 25 pesos for selling, down from 26 and 27
respectively, for a seven percent revaluation of the Cuban local
Minister Soberon stressed that irresponsible economic and
financial policies introduced by the US government had led to a
progressive and sustained depreciation of the US dollar, a
situation that creates high risks for nations that use the that
currency as a mean of payment or in their national
In view of the above, Resolutions No. 65 and 80 of the Central
Bank of Cuba were recently introduced replacing the use of US
dollars in Cuba by the local convertible peso for payments among
companies as well as for cash operations.
Since November 8, 2004, the Cuban Convertible Peso has been the
mandatory means of exchange in the territory of the Republic of
Cuba for all transactions involving foreign currencies in which
entities, foreign visitors and Cubans participate, and a ten
percent tax was introduced for cash payments in US dollars, to
counter the risks and costs involved in the use of the US dollar
by the Cuban banking system.
The US government, through its economic, commercial and
financial blockade against Cuba, was seeking to introduce
further restrictions against payments in dollars by the island.
Jorge Barrera, Deputy President of the Central Bank of Cuba,
explained that Agreement No. 15 of the banks Monetary Policy
Committee announced Thursday was putting an end to the fixed one-
to-one exchange rate of the Cuban Convertible Peso before the US
According to calculations, as of April 9, one US dollar will be
exchanged for approximately 80 cents of a Cuban Convertible
Peso, and one Convertible Peso will buy 1.04 dollars, while one
US dollar will trade for 20 regular Cuban Pesos.
Orlando Lopez, President of the Banco Popular de Ahorro, Cubas
savings bank, said there has been citizen support for the new
measures, as expressed in the fact that there has been an
increase in the balances of existing bank accounts. He noted
that one out of every four Cubans have savings accounts.
The Central Bank of Cuban informed that in order to update the
banking operational systems, the banks would not open on
Saturday, but will open up for normal operations on Monday.
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