Cuba Says Peso Exchange Rate Has Not Changed
HAVANA TIMES — Rumors in recent days about a shift in the exchange rate of the regular Cuban peso (CUP) and the hard-currency-pegged CUC are false, informed the Central Bank of Cuba on Saturday.
Some unofficial sources had said the current rate of 24 pesos to one CUC was to be lowered to 18 pesos to one CUC. Such a move would have increased the value of the Cuban peso since the CUC is pegged at 1 to 1 with the US dollar.
If prices at the government monopoly retail stores had remained the same, such a variation in the exchange rate would have increased the value of the low Cuban salaries by 25%.
The Central Bank explained “In recent days there has been an increased presence of people at banks and the CADECA money exchange offices changing their convertible pesos (CUC) into CUP. This occurred based on the false information that the exchange rate was going to be lowered.”
The bank informed that that exchange rate of the CUP remains at 24 X 1 CUC.
Who started this Rumour? and from which government department? Mr Castro?
Gradually synchronizing the exchange rate over time might well be the plan to eventually merge the two currencies.
You hit that right on the head Moses! Here’s the interesting part, the network of communication within the central cities makes things like this happen. I would love to see Cuba remain independent and sovereign however the guys running the show are pathetic!
Street gossip in Cuba usually has some measure of truth. Likewise, the Castro dictatorship has no shame in reversing itself with respect to public pronouncements. So publishing this announcement is meaningless. Keep in mind that there is no independent media to lambaste government officials for flip-flopping. Therefore it won’t be a big surprise if a month from now the Castros’ central bank lowers the value of the CUC against the CUP. Doing so is the Castros shortcut way to try to jumpstart a moribund economy.