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New Exchange Rate: Ten Cuban pesos per CUC?

toronto
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New Exchange Rate: Ten Cuban pesos per CUC?

I am not sure if this was posted already...

oncubamagazine.com/economy-business/…

Newton Aycliffe...
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1. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Interesting article. Thanks for posting the link.

Fredericton, Canada
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2. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Interesting, indeed. That's a big deal.

Apopka, Florida
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3. Re: New Exchange Rate: Ten Cuban pesos per CUC?

When you digest the economics, one realizes that the 10:1 rate they are referring to is a potential replacement for the 1 CUC = 1 CUP rate the Cuban government uses internally with its government owned businesses and has nothing to do with the commercial commerce we deal with.

Calgary, Canada
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4. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Interesting, but ditto Bob. This has noting to do with tourists.

Cheers,

Terry

Melbourne, Australia
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5. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Also read

http://www.havanatimes.org/?p=100424

Calgary, Canada
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6. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Interesting, but my head hurts!

The sentence "This process will occur by the devaluation of the official rate (1CUC for 1CUP), to be increased to meet the rate of exchange houses, CADECAS (1CUC for 25 CUP)." seems to imply that the rate the Cuban government uses internally is being gradually decreased from 1:1 to 1:25.

Although the Banco Central website still reflects the 1:1 rate, the last sentence in the article seems to be saying that a 1:7 rate has been used since 2011. If I understand what they are saying (although I probably don't), there is to be a gradual, step by step change from 1:1 to 1:7 to 1:10, and so on until it becomes 1:25, the same as what a tourist or an ordinary Cuban would pay.

In other words, by the governments creative accounting system, it seems that a CUC is worth either 1 CUP, 7 CUP, 10 CUP, or 25 CUP, depending on who is buying what, with which from whom, and when.

How this might eventually affect the tourist is that the costs to the hotels may eventually be reduced. Whether the reduction in costs would be passed along to the customer, or be used to provide better quality food, furnishings, etc, or just more profit for the hotel, remains to be seen.

Newton Aycliffe...
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for Cuba, Rafael Freyre, Guardalavaca, Holguin
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7. Re: New Exchange Rate: Ten Cuban pesos per CUC?

I think that Terry sums it up perfectly when he says it will have nothing to do with tourists.

Calgary, Canada
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8. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Certainly nothing directly to do with tourists, and likely nothing even indirectly. It isn't even something that we tourists are likely to even know about, other from reading articles like the ones posted by Lefora and Fidel. And most of us won't understand it anyway. Cuban accounting seems to be a pretty esoteric subject.

Sarnia, Ontario...
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9. Re: New Exchange Rate: Ten Cuban pesos per CUC?

I am Mongolica because I do not understand how it will affect me. I use almost all CUP's for all my fruit and vegetables, rice, beans, bread, Cuban beer, CUC's of course for items in green dollar CUC stores, Should I exchange my Canadian $ for CUP's at Cadeca/bank or change to CUC's and then CUP?

Also, does this mean that all the CUP's I have now in Cuba are worth more than 24 to 1 CUC?

Edited: 06 December 2013, 17:02
Calgary, Canada
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10. Re: New Exchange Rate: Ten Cuban pesos per CUC?

Candy, this has no impact whatsoever on anyone right now. It's an internal thing.

Cheers,

Terry