• Submitted by: manso
• Politics and Government
• 03 / 14 / 2011

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An accord issued by the Central Bank of Cuba explains with details the procedure which settles a new exchange rate of convertible peso to USA dollar. The document adds this is a discreet step towards the improvement of the economic balance of currencies of the country, since it constitutes an encouragement of the exporting activity and the replacement process of importations.

Accord No. 30/11 from Cuba’s Central Bank’s Committee of Monetary Policy

In the year 2005, taking into consideration the international financial and economic context, also a joint of events of more specific character which positively influenced the fulfillment of the country’s economic activity; the decision of reevaluation,  in a 8 % the official exchange rate of the convertible peso (CUC) with respect to the North American dollar (USD) and the rest of foreign currencies, was taken. It is worth to recall that since the year 1994, the date of the appearance of convertible peso and until April 8, 2005, the exchange rate of the convertible peso with respect to the North American dollar was kept steady in 1 CUC x 1 USD.

Our economy ‘s own dynamics in the following years, worsened by losses and damages caused by the hurricanes taking place in the year 2008, also the effects of the international economic crisis, characterized by a great volatility of monetary markets, leads us to the reevaluation of keeping the exchange rate of the convertible peso with respect to the USA dollar and the rest of currencies which does not correspond with the country’s economic needs in the present conditions.

The analysis of all these factors have made the Committee of Monetary Policy of Cuba’s Central Bank to timely consider the devaluation in a 8 % of the exchange rate of convertible peso with respect to the USA dollar and the rest of foreign currencies or say to reestablish parity between convertible peso and the USA dollar.

This decision means a discreet step to ease an improvement in the balance of currencies of the country, since it constitutes an encouragement of the exporting activity and the replacement process of importations; which together with a greater effectiveness of planning, of procedures used for the assignment of currencies, greater rationality in the management of the monetary issuance will better favour the settlement of conditions in our external financial conditions.

As it was reported in the Sixth Ordinary Term of Sessions of the Seventh Legislature of the National Assembly of the People’s Power, during the year 2010, the limitations continued to decrease, which were applied at the end of the year 2008 on the payment from the Cuban banks to foreigner suppliers and at the same time significant advancements have been achieved in the renegotiation of the debt with our main creditors.

Taking into account the aforementioned, since March 14 of 2011, the official exchange rate of the convertible peso with respect to the North American dollar will be fixed in 1 x 1 in the whole national territory, either for the changing operations made by the entrepreneurial sector, also for the ones the population carries out through CADECA.

It is necessary to clarify that commercial applied margins will be kept at present at the changing operations. The goal is to cover the costs of financial institutions which give these services.

At the same time, the 10 % tax applied continues to be in force to those willing to buy convertible pesos with USA dollars in cash, as a compensation for the costs and risks that their handling cause as the consequence of the irrational and unfair economic and commercial blockade imposed by the USA government against Cuba since half a century.

This decision does not affect the present exchange rate of the Cuban peso with respect to convertible peso in CADECA, which remains 24 Cuban pesos for the convertible pesos’ sale operations by the population at CADECA. It neither modifies the official exchange rate of the Cuban peso versus convertible peso, used by the accountability of the state sector which settles that one Cuban peso is equal to a convertible peso.


Ernesto Medina Villaveirán
Ministro-Presidente
Banco Central de Cuba
12 de marzo de 2011