14 March 2011

CUBA: CUC/ Convertible Peso/Chavito...Devalued By 8% Vs USD.

 
REUTERS/

      Hoping to improve exports and tourism, Cuba has devalued its convertible peso, CUC, aka "Chavito" by 8%.
    The Chavito has been valued at $1.08 vs usd since 2005, but will now be valued one-to-one.
    "This is a very important measure that Cuban economists and foreign experts on Cuba have been recommending for years," economist Carmelo Mesa-Lago told REUTERS. "It should reduce the significant overestimation of the CUC/convertible peso/Chavito that causes all kinds of distortions, make cheaper tourism for Cuban Americans, Americans and Latin American countries in the dollar area, and stimulate sending of remittances."  
    However, a 10% tax on dollars remains because of the U.S. embargo. 
    Prior to today, a customer got 80 CUC for every $100; now the customer will get 87.10 CUC.
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    From my experience, what this means...is that you may now be able to get 90, 92 or perhaps even as much as 95 Chavitos for those Benjamins...with very hard bargaining..."en la calle"/in the street. 
   As always, BEWARE of la policia...in plain clothes, of course!!!  
   And...ALWAYS bring pristine bills, preferably the newest version.