[Marxism] BBC: Cubans queue to ditch US dollars

["Walter Lippmann" <walterlx@xxxxxxxxxxxxx>]

(I went out today and the lines were definitely a lot
shorter than yesterday. The local Banco Metropolitano
where I'd spent three hours yesterday had assigned a
second teller, so two of the four tellers were doing
money changing. There were half a dozen people waiting
outside, a lot less than yesterday. A smaller line was
also visible at the Ministry of Telecommunications
where there's another bank inside. Across the street
from these, at the main bus station, there is a small
money changing place. These are called CADECAs, which
stands for CAsaDeCAmbio. At little ones like this you
can only change dollars for regular Cuban pesos and
there was the longest line I'd ever seen there, about
a dozen people. These were all Cubans changing a few
dollar bills over into Cuban pesos or convertibles.

(I went through the line and changed a bill for twenty
in fifteen minutes. The clerk had a stack of the new
5 convertibles Che coin, but for some unaccountable
reason, she wouldn't sell me any. She directed me to
a bank in the station. There was no line at all there,
but they only had one coin for sale, which I bought.

(The new Che coin, which costs $5 or 5 convertibles
is pecularly dated 1999, though it was just issued
this week. Visually it is both much smaller than
and weighs less than the more familiar three peso
Che coin. It's bi-metalic with a silvery or maybe
steel-like ring on the outside surrounding the
brass [?] center where Che's image is. I predict it
will be very easy to lose because it's so small.)


Walter
====================================================

Cubans queue to ditch US dollars

Cubans have been joining long queues to hand in their US
dollars, before a deadline making them officially worthless
in two weeks' time.

Banks and exchange kiosks were jammed as Cubans sought to
sell their dollars, which have been legal tender there for
more than a decade, for Cuban pesos.

After 8 November, Cubans will have to pay a 10% surcharge
to exchange any leftover US currency.

Cuba banned dollars from transactions in response to a
tightened US embargo.

President Fidel Castro announced the change of policy on
Monday, accusing Washington of "mafia-like" moves limiting
cash and people flows to the island.

================================

People would rather keep their money in dollars. They know
the Cuban peso is useless when they leave

Journalist Oscar Mario Gonzalez ===========================

The change will be felt by everyone on Cuba, where many
everyday transactions are carried out in dollars.

"Can you exchange any amount?" a young man asked at a kiosk
window in Havana.

"Are they going to ask you for your ID or to justify where
you got the money from?" another asked people in the queue.

Cubans are sent a huge amount - more than $800m a year -
from family members abroad, more than the country earns
from its major export, sugar.

They will still be able to hold dollars, but will not be
able to spend them in commercial transactions.

Backing

Convertible Cuban pesos are pegged par to the dollar, but
are worthless outside the country.

Some in the queues backed Mr Castro's decision.

"This is not an arbitrary decision. It is due to the
unilateral action of the US government against Cuba," said
book editor Cesar Ramos.

Others said they were sorry to be giving up a hard
currency.

"People will have to change their dollars to live off, but
they would rather keep their money in dollars," said
dissident journalist Oscar Mario Gonzalez.

"They know the Cuban peso is useless when they leave the
Cuban coast."

On Thursday the UN General Assembly voted overwhelmingly,
179 to 4, for a resolution condemning the US "blockade" on
Havana - the 13th year in a row it has taken that position.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/world/americas/3963773.stm

Published: 2004/10/29 00:11:48 GMT

C BBC MMIV



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