Nino Posted December 11, 2020 Share Posted December 11, 2020 Well, looks like the CUC is on the way out. https://www.wionews.com/world/cuba-to-unify-its-two-currencies-as-of-january-1-348962 Cuba to unify its two currencies as of January 1 AFP Havana, Cuba Published: Dec 11, 2020, Cuba will unify its two currencies, the Cuban peso and convertible peso, as of January 1, ending a unique system that has existed for nearly three decades, President Miguel Diaz-Canel said Thursday. "We consider the conditions met to announce the start of this reform beginning January 1, 2021, with a single exchange rate of 24 Cuban pesos for one dollar," Diaz-Canel said on television, alongside Raul Castro, the country's former president and Communist Party leader. The reform, which had been announced years ago and repeatedly postponed, is intended to make the Cuban economy more accessible to foreign investors. The move "will place the country in a better condition for needed transformations by updating our economic model," he added. The Communist leader acknowledged that was "one of the most complex tasks" facing the country, as it is buffeted by headwinds from a strengthening US embargo, the Covid-19 pandemic, and a global economic crisis. The move, postponed for years as authorities waited for the best time to make the change, comes as the Cuban economy is expected to contract by 8 percent this year, according to the UN's Economic Commission for Latin America. The reform will eliminate the convertible peso, or CUC, created in 1994 and linked to the dollar. Only the Cuban peso, or CUP, will remain, which is worth 24 times less. The currency reform comes after the island reintroduced the dollar in October 2019, with appliance and food stores which only accept that currency. The value of the CUP could suffer against this strong currency. Additionally, state enterprises, which receive a reduced rate of one CUP to the dollar, will see production costs rise, leading to price hikes. The government has already announced significant wage increases to offset expected high inflation. 2 Link to comment Share on other sites More sharing options...
NSXCIGAR Posted December 11, 2020 Share Posted December 11, 2020 I wonder how much CUP is floating around out there with people desperate for USD. I would imagine the off-market exchange rate will be much more than 24:1 almost immediately and will get worse and worse. Just like the sun comes up in the morning, communists can't stop inflating their currency. 2 Link to comment Share on other sites More sharing options...
Nino Posted December 11, 2020 Share Posted December 11, 2020 5 hours ago, NSXCIGAR said: I wonder how much CUP is floating around out there with people desperate for USD. I would imagine the off-market exchange rate will be much more than 24:1 almost immediately and will get worse and worse. Just like the sun comes up in the morning, communists can't stop inflating their currency. I wonder whether I'll need a wheelbarrow, a carload or a truckload to carry them CUP's from the black market to the cigar store.... 5 hours ago, NSXCIGAR said: Just like the sun comes up in the morning, communists can't stop inflating their currency. Yep, but their "intellectual rethoric diarrhea" is even worse - watch last night's special tv announcement of the "Start of the new order" - the chief of the Cuban Communist Party (or is it the Cuba Castro Clan) in uniform on the left to show he's still alive ( as it was rumoured he had died ) and the President on the right. 3 Link to comment Share on other sites More sharing options...
Nino Posted December 11, 2020 Share Posted December 11, 2020 First meme on the new "Ordenamiento" rules. He orders - and I lie. Ordena (orders) - miento (lying) 2 Link to comment Share on other sites More sharing options...
NSXCIGAR Posted December 11, 2020 Share Posted December 11, 2020 7 hours ago, nino said: "Start of the new order" Another "Great Leap Forward". I'm actually surprised the CUC lasted as long as it did. 1 Link to comment Share on other sites More sharing options...
JohnnyO Posted December 13, 2020 Share Posted December 13, 2020 Went to a few shops this weekend, Artesania, Cohiba, Comodoro, Melia, Club Havana, 5ta y 16. Most had the same inventory but prices varied. For example Monte #2 in some shops was 313 CUC and others 240 CUC. Most other Belicoso/Torp ranged in that price. Cohiba and Trinidad only the smaller cigars were visible. All are still accepting CUP and CUC except for 5ta y 16 which is credit cards or USD only. If they did change the prices, they are getting closer to world prices. Many Asian buyers that did not seem like they were smokers. At Club Havana about a dozen were there, all on their phones giving price reports, no one smoking. Technically we still have to quarantine for 10 days but I moved around pretty easily. John 4 Link to comment Share on other sites More sharing options...
Nino Posted December 13, 2020 Share Posted December 13, 2020 I fear that ALL shops in HAV will ONLY accept credit cards as of January 2021. This info comes from a British friend presently in HAV now. 2 Link to comment Share on other sites More sharing options...
JohnnyO Posted December 14, 2020 Share Posted December 14, 2020 There is a bit of confusion as to their choice of words. They refer to January 1st as "Day Zero", and one might misinterpret that as the last day of the CUC. However, according to the Gazeta Official this is the day it will stop circulating. That is to say that banks and shops must give change in CUP and retire the CUC from the market. Holders of CUC's have 180 days to turn them in. A date in June has not been set yet for its final retirement. John 1 Link to comment Share on other sites More sharing options...
JohnnyO Posted December 21, 2020 Share Posted December 21, 2020 This weekend only went to 5ta y 16, inventory hasn't moved much. The COVID panic is full blast. Some locals don't want their family members visiting from the US. If they have a job or kids in school they have to quarantine for 15 days. The only change I saw was they were giving $280 US for 300 CUC at the airport on your way out. John 1 Link to comment Share on other sites More sharing options...
Nino Posted December 21, 2020 Share Posted December 21, 2020 The CUC is dead way before it is officially dead on January 1st ( or by the June '21 deadline ) : Private business sector refuses to accept CUC anymore, they don't want to do the state's job in collecting obsolete CUC notes and are afraid of devaluations so they only accpet CUP now : https://www.14ymedio.com/cuba/privado-adelanta-Gobierno-rechazar-CUC_0_3007499226.html El sector privado cubano se adelanta al Gobierno al rechazar los pagos en CUC Los trabajadores por cuenta propia prefieren pasar la mayor parte de sus operaciones al peso por temor a devaluaciones 14ymedio, La Habana | Diciembre 21, 2020 3 Link to comment Share on other sites More sharing options...
MrBirdman Posted December 21, 2020 Share Posted December 21, 2020 19 hours ago, nino said: Private business sector refuses to accept CUC anymore Who can blame them? Even the government has admitted that they are essentially (very) hot potatoes, and no one want to be caught holding them when the music stops. People in Cuba know there is a hurricane of inflation coming, and holding CUC's is like boarding up your windows with balsa wood. The Cuban people will be in my thoughts over the coming months. 19 hours ago, nino said: The CUC is dead way before it is officially dead on January 1st ( or by the June '21 deadline ) : Hopefully remittances will be allowed to resume by February. Link to comment Share on other sites More sharing options...
JohnnyO Posted December 21, 2020 Share Posted December 21, 2020 Forgot to mention I bought CUC at 1.50 and Cuban Pesos at 37.5. That 24:1 number is just the official rate at banks and exchange houses. On your way out the exchange houses in the airport were taking CUC and CUP back. John 1 Link to comment Share on other sites More sharing options...
Nino Posted December 22, 2020 Share Posted December 22, 2020 11 hours ago, MrBirdman said: Hopefully remittances will be allowed to resume by February. No worries, the Cuban gvmt. is gearing up to have foreigners take care of all the payments in Cuba. Last I read is that the electricity bill can be paid from abroad. Link to comment Share on other sites More sharing options...
Nino Posted December 22, 2020 Share Posted December 22, 2020 One can always invite the Cuban relatives/friends to a CIMEX year end dinner for $242 for 4 persons or $400 for 6 ... They seem desperate to catch foreign currency. https://www.cubanet.org/noticias/cimex-propone-a-emigrados-que-paguen-una-cena-de-fin-de-ano-a-sus-familiares/ Link to comment Share on other sites More sharing options...
Habana Mike Posted December 23, 2020 Share Posted December 23, 2020 Funny how cheap all the discontinued are. Why do they even leave them on the price list? Link to comment Share on other sites More sharing options...
Hammer Smokin' Posted December 23, 2020 Share Posted December 23, 2020 to remind you how much they have increased the prices on the currently available cigars. Link to comment Share on other sites More sharing options...
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