Cuba Restores Parity of US Dollar, Convertible Peso
Havana, Mar 14. -The Monetary Policy Committee of the Cuban Central Bank has restored parity between the Cuban convertible peso (CUC) and the U.S. dollar (USD), according to a note published in Granma newspaper on Monday.
In 2005, it was decided to revalue the exchange rate of the CUC to the U.S. dollar and other foreign currencies by eight percent, said the note, signed by the Central Bankâ�Ös minister-president, Ernesto Medina.
From 1994, when the peso convertible was created, until April 8, 2005, the rate of exchange for the CUC with the U.S. dollar was one to one.
The dynamics of the Cuban economy in the years that followed and the effects of the world crisis made it necessary to rethink the convenience of a CUC exchange rate with the dollar and other currencies that is not in line with the countryâ�Ös present needs, the note said.
An analysis of these factors has determined that the Central Bankâ�Ös Monetary Policy Committee believes it opportune to devaluate by eight percent the exchange rate of the CUC for the dollar and other foreign currencies, in other words, to restore parity between the CUC and the U.S. dollar.
This decision is a modest step toward improving the balance between the countryâ�Ös currencies, because it is a stimulus for export activity and the process of replacing imports with domestically-produced goods, the note said.
As of Monday, March 14, the official rate of exchange between the CUC and the U.S. dollar would be set at one to one nationwide, including for currency exchange transactions in the business sector and for the population in general through the CADECA currency exchange stores.
The commercial margins that are presently applied for exchange transactions would be maintained to cover the costs of the financial institutions that provide these services, the note said.
Likewise, the 10 percent fee for buying CUCs with U.S. dollars in cash would remain in place, the note said. The fee is maintained as compensation for the costs and risks associated with handling U.S. dollars as a result of the U.S. economic, commercial and financial blockade of Cuba, the note said.
This decision does not affect the current exchange rate of the Cuban peso with the CUC in the CADECA stores, and it does not change the official exchange rate between the Cuban peso and the CUC used in state accounting transactions. (Prensa Latina)
