Cuba Implements New Currency Exchange Rate

Havana, Aug 3 (ACN) The Minister-president of the Cuban Central Bank, Sabina Wilson Gonzalez announced on Wednesday the implementation on August 4 of a new currency exchange rate –1 USD to 120 Cuban Pesos.

Speaking at the prime-time TV show Mesa Redonda, the official explained that exchange operations will take place at exchange offices (CADECAS) at airports, hotels, and tourist centers, as well as at local banks.

Wilson said that the new rate is in tune with Decree 63 allowing other types of exchange rates, after dropping two decrees which established a single rate.

However, the official 24 Peso per 1 USD exchange rate keeps operating for specific activities, though the new rate will diversify different exchange types of the currency market that will be set up. Such market will go through different implementation stages, starting by purchasing hard currency, its own definition and will conclude with the sale of hard currency.

As to the market definition, the official said that it will not solve the country’s domestic economic problem, but it will provide goods, services and currency which the country needs to achieve economic stability. It will also help achieve the aspiration of having a single exchange rate favoring the Cuban national currency, and as a result, the people will count on better purchasing power using Cuban pesos.

The fundamental goal of Cuban banking system is defending the national currency and try to achieve all transactions in that currency, said the Minister-President of the Cuban Central Bank.