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Adios to greenback: Loon
is still welcome as Cuba sets out to eliminate
U.S. dollar
News Services , October
27, 2004. The
Vancouver Province, Canada.
Cuba said "adios" to the Yankee
dollar that shored up its struggling economy
for a decade and launched a two-week process
yesterday to eliminate the U.S. currency
from its stores and businesses in response
to stepped-up U.S. sanctions.
President Fidel Castro said widespread
use of the currency of his country's No.
1 enemy --once seen as a necessary evil
to stay afloat after losing Soviet aid and
trade -- would be halted to guarantee Cuba's
economic independence.
However, the move will also have an impact
on many Canadians who spend their winter
vacations on Cuba's white, sandy beaches.
Although euros are accepted in a few resorts,
the U.S. dollar has been the primary currency
demanded at hotels and other tourist installations.
Other foreign currencies can be changed
into convertible pesos at exchange houses
and banks without a fee. But starting Nov.
8, a 10-per-cent fee will be charged to
change U.S. dollars into convertible pesos
"because of the situation created by
the new measures by the United States government
to asphyxiate the country," Castro
said.
Vancouver-based travel agent Philip Beck
of Carlson Wagonlit said he's counselling
his Cuba-bound clients to avoid taking U.S.
dollars to the Caribbean country.
"U.S. dollars used to be on par with
Cuba's convertible peso, but now I would
encourage B.C. travellers to take Canadian
dollars.
"It's as simple as that. There's no
extra fee that way."
Cuba is "protecting itself from external
economic aggression," Castro said in
a statement he asked his top aide to read
on state television earlier this week. Castro,
78, was also there, looking animated despite
the blue sling supporting his broken right
arm after a fall last week that also shattered
his left kneecap.
A local currency known as the convertible
Cuban peso will be the only money accepted
at most businesses across the island of
11.2 million people beginning Nov. 8, Castro's
statement said.
Since the U.S. dollar was legalized in
Cuba in 1993, Cubans have used it to buy
everything from refrigerators to daily necessities
such as soap, cooking oil and other items
not provided in monthly government rations.
Probably half of all Cubans have access
to U.S. dollars, mostly in remittances from
relatives abroad. Others get dollars in
tips or through unauthorized pursuits ranging
from private taxi services to prostitution.
Many Cubans with government jobs also receive
part of their salaries in the convertible
pesos -- known as "chavitos" --
that officially trade one-to-one with the
U.S. dollar. Convertible pesos have long
been accepted in lieu of dollars, but Cubans
have preferred the American bills.
"Every country should have its own
currency," John Kavulich, president
of the U.S.-Cuba Trade and Economic Council,
said from New York.
"The trick will be to force Cuban
citizens to accept the Cuban convertible
peso and be just as comfortable putting
them in their mattress as their dollars."
Castro told Cubans to tell relatives to
now send family remittances in euros, British
pounds, Canadian dollars, Swiss francs --
anything but U.S. dollars.
Castro said the move would help protect
Cuba's economy as the U.S. administration
seeks to punish banks and businesses shipping
U.S. dollars here, despite U.S. government
sanctions.
Castro said the latest move did not criminalize
U.S. dollars and Cubans can still hold unlimited
amounts of American money.
Existing bank accounts in U.S. dollars
will be respected, he said, and withdrawals
can be made in American money.
© The
Vancouver Province 2004
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