[Marxism] Convertible peso up 8% vs. USD, other hard currencies

["walterlx@xxxxxxxxxxxxx" <walterlx@xxxxxxxxxxxxx>]

(Here's the report from the Granma daily on Fidel's
remarks Thursday night explaining the latest steps.

(Fidel planted the idea that he increasingly feels 
attracted by the ideas of Marx, Lenin and Engels, 
because they teach us a great deal, they have opened 
up the road to thought. We are not going to say that 
those ideas are dead, he specified. "We are who we 
are before the challenge that these ideas are 
advancing over enormous obstacles; obstacles that 
perhaps were not imagined by the very creators of 
the doctrines of Marxism and Leninism.)
=====================================================

GRANMA INTERNATIONAL
Havana. March 25, 2005 
 
The convertible peso appreciates
8% against the US dollar and other hard currencies

BY ANETT RIOS JAUREGUI AND JOSÉ A DE LA OSA 
Granma daily staff writers

http://www.granma.cu/ingles/2005/marzo/vier25/14fidel2-i.html

PRESIDENT Fidel Castro announced last night that the Monetary Policy
Committee of the Central Bank of Cuba has adopted an agreement to increase
the exchange rate of the convertible peso in relation to the US dollar and
other hard currencies from next April 9. This revaluation will stand at 8%
for the moment. 

Besides this, an exchange rate for the purchase and sale of US dollars is
to be fixed, as well as for other hard currencies. Following the
Revolution?s policy of providing full guarantees for funds deposited in the
banks, the agreement states that bank accounts in US dollars ? both
existing accounts and those opened between now and April 9 ? will not be
affected by this measure. 

Holders of accounts in convertible pesos will benefit from the revaluation
of this currency from that date. Likewise, the Cuban peso ? which will
maintain its rate of exchange with respect to the convertible peso ? will
similarly increase its value in relation to the US dollar.

"Last week we revalued the peso," said Fidel, "this week we?re going to
revalue the convertible peso," and he underlined that the value achieved
"by our modest little peso" will be conserved in its totality. 

He explained that each time the convertible peso is valued or revalued, the
Cuban peso is revalued, but that the Cuban peso can be revalued
independently of the convertible peso. "There are two mechanisms and both
of them lead to Rome: all roads lead to a currency that has value and all
those who are receiving an increment in social assistance, their pensions,
or wages, will receive an increase in the revalued currency."

"We are entering a new stage," Fidel stated and now we will see what
they?re going to do, what they can do (the US government). The only thing
I?m going to say is that we are not doing that for "for their money,"
because we can do without their money." He emphasized that this new measure
seeks to strengthen our convertible peso and is not directed at harming
anyone. 

"Within our economy are the orders of the sovereign people of Cuba,"
emphasized Fidel. "We can do without the dollar," he reiterated, "they are
the ones who cannot do without it. 

"We will continue forward with our convertible pesos and our Cuban pesos;
we will continue to move forward and both will continue to move closer,
that is their destiny: they are brothers, born of the same mother called
Revolution. And the day that brings the miracle of complete unity between
the two," he added, "we will have then scaled to a place of honor high
above the road of the Revolution towards the most just and humane society
in the world, the most socialist and almost communist that has ever existed
in the world.

"I clearly see this objective which our people will achieve some day,"
stressed Fidel, "and for this reason we are battling today and we will not
rest."

During his speech at the International Conference Center, he observed that
he was not against high wages, but asked what would happen to those who
have less today. In his assessment, if the formula is a socialist one,
those who contribute most according to their abilities will receive
according to their work. 

"We have to strongly defend this formula within a spirit of social justice
and assistance for those that need it," he emphasized. "Because if anyone
has a need and cannot resolve it, they should not be left without food
because of their situation; if someone has a problem from birth, some
accident or illness, or were not born blessed with special qualities, we
have to help them, because it?s for this reason we belong to a species with
the capacity to think, a sensitive species. We cannot fall into that
repugnant system or principle of "sort yourself out the best you can."

"The Revolution has to seek this equality," underlined Fidel. That?s what
communism has always sought to do, he recalled, even in terms of
distribution, on the day that the necessary means exist to satisfy needs. 

Fidel planted the idea that he increasingly feels attracted by the ideas of
Marx, Lenin and Engels, because they teach us a great deal, they have
opened up the road to thought. We are not going to say that those ideas are
dead, he specified. "We are who we are before the challenge that these
ideas are advancing over enormous obstacles; obstacles that perhaps were
not imagined by the very creators of the doctrines of Marxism and Leninism.

"This is what has brought us to this point," he specified, "and from now on
we will see how it is going to help us better because we are now enjoying
all the benefits and possibilities of having a socialist regime, not
measured in terms of automobiles, he clarified, but through real
possibilities of doing things for the wellbeing of our people, for
wellbeing in all senses of the word, and in part also, for the wellbeing of
humanity.

"Our success is something helpful," he continued. "Our battle against this
powerful and seemingly unstoppable empire is showing many peoples that
"They Can Do It!" as the slogan for the literacy campaign in Venezuela
goes. And we can also say: "We can do it, and we?re demonstrating that we
can do it!"

Fidel announced that, in four months time, starting from April, all
refrigerators lacking seals will have been repaired. Also, before December
31, some 12.5 million items of cookware will have been distributed amongst
Cuban families, including new pressure cookers, rice cookers, electric
pressure cookers and electric hotplates with a variable power of 1,200, 900
and 600 watts. 

He commented that only a war, a great international conflict, could prevent
those objectives from being fulfilled. And it is possible that before the
year ends, four out of every five families that have electricity but cook
with kerosene will cease using this costly, inefficient and harmful fuel;
and that no less than 50% of those who today consume liquefied gas will
also be cooking using electricity. 

The president described as "a black hole of electricity" the range of
breakdowns, irregularities, and inefficiencies in the functioning of
electrical equipment (such as refrigerators), electricity plants,
connections, and transformers, amongst others. The cost of this lost
electricity is equivalent to $100 million dollars, "but we are going to
convert this "hole" into a great reserve at minimum cost," he stated. 

"We are short of dollars to pay for soap, sanitary towels, and toothpaste
and we are going to make up the shortfall using government savings, that?s
what we?re doing in this context," he added. 

At the beginning of his speech, Fidel said that he had a long list of views
on his previous special addresses expressing optimistic sentiments from the
vast majority of our people. Nevertheless, he affirmed that he would prefer
critical opinions irrespective of whether they were correct or not.

He noted that the country is making a great effort to carry out what he
called "an economic and social countercoup of the Cuban Revolution," in the
face of attempts to strangle and liquidate us. He likewise emphasized that
it is necessary to give information to the population to help to clarify
problems, reflect and understand, and "fight, fight and fight!"

Opinions expressed by the population refer favorably to improvements in the
family shopping basket and the idea of handing over packaged goods, given
that that should ensure that everybody receives what is due to them.

There is concern over problems related to the drought that is affecting
various territories of the country, making food production more difficult
and increasing prices. At the request of the president, Carlos Lage and
Bárbara Castillo, secretary of the Executive Committee of the Council of
Ministers and minister of domestic trade, respectively, explained the
government policy of providing additional quantities of foodstuffs for the
population of the eastern provinces, which have been distributed for a
number of months now via the ration system and parallel market.

Opinions were reiterated on the need to increase state control over the
water distribution structures and to keep people constantly informed on
methods of addressing that problem and actions underway to overcome it.

It was also proposed to center attention on the control of produce and
prices in the farmers? markets, a basic outlet for the population, as well
as concerns that certain foodstuffs do not meet people?s expectations.

As was the case last time, Party, state and government, and Young Communist
League leaders were present at this third address by the president, as well
as representatives of the mass and official organizations and combatants
from the Revolutionary Armed Forces and the Ministry of the Interior.
 
 


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