Cuban convertible peso

1 CUC = 1 USD ( fixed)

1 EUR = 1.37 CUC 1 CUC = 0.72993 EUR

1 CHF = 1.1197 CUC 1 CUC = 0.89307 CHF

The convertible peso (Spanish peso cubano convertible ), abbreviated CUC is, besides the Cuban Peso one of two currencies in Cuba. He was originally introduced in 1994 as a local alternative to legalized in Cuba in 1993 U.S. dollars, at whose value it is bound. Today it serves as a unit of account between Cuban companies and as means of payment, for example, in shops for high-value consumer products. A convertible peso is divided into 100 centavos. Contrary to its name, the peso is not convertible freely convertible, but can be exchanged legally only in state-owned banks and bureaux de change inside Cuba.

In October 2013, the government announced to have adopted a plan for the merger of the two currencies used in parallel. Information on the expected duration of its implementation, however, they did not make it. However, clarified a published in March 2014 law that will be abolished as part of the consolidation currency, the peso convertible.

Denominations and design of banknotes

There are banknotes of 1, 3, 5, 10, 20, 50 and 100 convertible pesos in circulation, and there are coins with values ​​of 1, 5, 10, 25 and 50 centavos and 1 and 5 Pesos Convertibles.

On the front pages of notes each Monuments Cuban national hero are shown. On the backs of 2006 events from the Cuban history are represented symbolically since the new edition of December. The banknotes of the first edition (1994-2006) notwithstanding, wear a uniform representation of the Cuban national coat of arms on the back.

History

As the Cuban economy went into a severe crisis after the collapse of the Soviet Union, the Cuban government in 1993 decided to legalize the U.S. dollar as payment. So you accepted the fact that the U.S. currency had long been established in the population for the increasingly important black market for scarce goods become. Between 1989 and 1993, the street price of the dollar had increased from 7 to 160 pesos. At the same time, the state desperately needed foreign exchange for its imports after the trade relations with the former CMEA countries had largely ceased to exist. The dollar was opposed in 1994 the convertible peso as domestic foreign exchange currency.

The tourists, whose numbers greatly increased in the 90s, now had to ( almost) all pay in dollars. In this way the state secured a constantly bubbling source of foreign exchange. For tourists, diplomats, and equipped with special permission Cubans created similar to the Inter shops in the GDR dollar stores where so-called " luxury goods " ( goods in liberta system are not or only rarely available ) to buy goods from foreign exchange. Later, it was also the general public allowed to shop there. Since there were many goods that were not or no longer available in the normal peso stores, was a native peso against the stronger parallel currency. Tobacco and sugar cane workers were for a time a part of their wages paid in dollars.

In 2004, the U.S. dollar was abolished as legal tender in Cuba, but his possession remained legal. His place was now full of a convertible peso. Officially, this was justified by the " band activity of the U.S. empire against Cuba " ( Castro). But ostensible motive is likely to make better use of foreign exchange sources have been, since now no exchange of force in Cuba means of payment could be made abroad and could now accrue corresponding transaction fees exclusively Cuban banks. On November 8, the change was complete: all bank deposits were converted on that day without reductions in CUC. In practice, however, the conversion meant really just a name change: The dual - currency system was retained.

In October 2013, the Cuban government released a statement in which it announced the merging of the two parallel existing Cuban currencies, but without providing specific information on the timing of their implementation of the necessary measures. The Council of Ministers had adopted a timetable, it said in the statement first in Granma, the official organ of the Communist Party of Cuba, published. The first phase concerns only the companies in the field of accounting. As a practical measure, the population in question was on a trial basis in selected, so far exclusively convertible pesos ( CUC) accepting state stores introduced the option to pay the purchase price at the exchange rate of 25:1 in Cuban Pesos ( CUP). Already in 2008, Raúl Castro had spoken publicly for the first time after the official adoption of the President Office of its intent to eliminate progressively the two- currency system. He said at the time, this requires about four or five years. In the VI. Congress of the PCC in April 2011 adopted "Guidelines for the economic and social policy " was then defined the end of the monetary duality as a target. The guidelines are the backbone orientation of those initiated under Raúl Castro reorientation of Cuban political and economic system after the illness resignation of the revolutionary leader Fidel Castro, who had steered the country from 1959 to 2006.

Exchange rates

The convertible peso is at the rate of the U.S. dollar ( USD) coupled. First, the ratio was 1:1. On 9 April 2005, the CUC was revalued against the dollar to 1:1.08. From the amount in CUC a conversion fee of 3% will be deducted, so that the exchange rate was at 1:1,11341. However, this can vary from bank to bank easily. Since March 14, 2011 applies again a parity exchange rate of 1:1 between the dollar and the CUC. Thus, imports will become more expensive and the internal market strengthened.

The exchange rates of other currencies (eg the Euro) to the convertible peso is calculated accordingly from their current rate against the U.S. dollar and the fixed exchange ratio USD / CUC. Cash in U.S. dollars is bought by Cuban banks, in contrast to other foreign currencies, with an additional discount of 10 %.

Since the convertible peso is not traded on international currency markets currency are recorded in credit card payments ( Euro Card / Master Card and Visa) settlement in U.S. dollars. For this, the paid price of the goods or the amount paid by the Cuban bank cash amount in the credit card bill in U.S. dollars is converted.

At the time the dollar legalization in the summer of 1993 the exchange rate for the Cuban Peso was fixed at 130 to the dollar. The validation process of the original currency could then be stopped and the Cuban economy was slowly recovering from the low point of their crisis. Lowest since 1993 buying rate for U.S. dollars was in the state CADECA - exchange offices from April to July 1998, 19 Pesos Cubanos. Since March 2005, the exchange rate between the peso convertible and peso Cubano is fixed at 1:24 ( purchase of CUC ) or 1:25 (sales ), after he had last stood at 1:26 / 1:27. Despite the political priorities under the leadership of President Raul Castro on the strengthening of the Cuban economy since 2008, no substantial improvement in the overall situation still could be recorded, which would allow a targeted appreciation of the peso against the Cuban Convertible Peso. In the national accounts, a relation of 1:1 between the two currencies is stated.