- Title: U.S. dollar makes a comeback in Cuba to fight capital flight
- Date: 16th October 2019
- Summary: HAVANA, CUBA (OCTOBER 15, 2019) (REUTERS) LOCALS WAITING TO BOARD BUS PEOPLE FILING INTO BUS (SOUNDBITE) (Spanish) LOCAL, GRACIELA CISNERO, SAYING: "It's the state who benefits and this money can be invented in other resources that we need. It's a great idea because I don't know how the private (sector) could do this. We can't. It would be impossible for the government to not do this." LOCALS AT ZEBRA CROSSING (SOUNDBITE) (Spanish) LOCAL, JULIET LOPEZ, SAYING: "I think that it has been thought out and its benefits will help the quality of life of people, especially those people who live far, where transportation is difficult. It's a situation that is hitting us hard now and there are other things that we also have...(one must) go on improving bit by bit." HAVANA, CUBA (RECENT) (REUTERS) GOODS FOR SALE AT SHOP PEOPLE ON FOOTPATH EXTERIOR OF LOCAL SHOP
- Embargoed: 30th October 2019 03:36
- Keywords: Cuba economy U.S. dollars Havana domestic appliances
- Location: HAVANA, CUBA
- City: HAVANA, CUBA
- Country: Cuba
- Topics: Government/Politics
- Reuters ID: LVA003B1CJ0AV
- Aspect Ratio: 16:9
- Story Text: Cuba said on Tuesday (October 15) it plans to allow some stores to sell domestic appliances and other goods in U.S. dollars, as the country struggles to get to grips with a black market of so-called mules who purchase goods abroad to sell door-to-door.
Vice President Salvador Valdes Mesa said 77 stores across the country would begin selling appliances and other goods for dollars at the end of the month.
Cuba's inefficient state-run economy is facing a crisis due to the implosion of ally Venezuela's economy and the tightening of the decades-old U.S. trade embargo under President Donald Trump.
There are currently two currencies in the Caribbean island-nation, the peso and the convertible peso, which is valued at 24 pesos, circulating in Cuba. Possession of the dollar and other tradable currencies is legal, but they have previously not been deemed legal tender for purchases.
Cubans who want to buy from the specialist stores will need to use a dollar-denominated bank card from an account opened with tradable currencies, such as the dollar or euro. People may obtain those tradable currencies through offshore remittances or by other means such as exchanging local pesos on the street, the government said.
The government claims the convertible peso is equal to the dollar, but imported appliances and other goods, when available, have huge markups as they are purchased in tradable currencies while the peso and convertible peso have no value abroad.
(Production: Nelson Gonzalez, Rodrigo Gutierrez)
- Copyright Holder: REUTERS
- Usage Terms/Restrictions: None