El Presidente Posted October 23, 2013 Posted October 23, 2013 As we have been reading today....and there is little detail.....the CUC is on it's way out and the Cuban Peso will become the sole currency in Cuba. Personally, I can't wait to carry around bundles of 100 Peso notes and pocketfuls of coins For seasoned travellers there, what do you think the ramifications will be?
oliverdst Posted October 23, 2013 Posted October 23, 2013 Like you said, little details so far but what I saw in Brazil is that every time government did this kind of thing (merging currencies, indexing a currency to another currency...) in the end the inflation raised. We are talking about Cuba, a unique place in the world for several reasons, so we have to wait. But one thing that raised a flag to me is that Cubans "politicians" have almost zero experience with market so maybe they are more in the "guessing method" than in "academic method".
MrGinger Posted October 23, 2013 Posted October 23, 2013 The key phrase in the following summary is "No fixed timetable". People in Havana have been saying that this change is "imminent" for about 4 years now. Who knows when it will occur.
polarbear Posted October 26, 2013 Posted October 26, 2013 As we have been reading today....and there is little detail.....the CUC is on it's way out and the Cuban Peso will become the sole currency in Cuba. Personally, I can't wait to carry around bundles of 100 Peso notes and pocketfuls of coins It'll feel like you're in Bali...
TM-US Posted October 26, 2013 Posted October 26, 2013 It may change how the currency is valued, but it is a good thing in the long run. Kind of like how there were two currencies in the old Soviet Union.
ajgagnon Posted October 26, 2013 Posted October 26, 2013 I don't suppose this would go along with allowing the currency to be traded on the open market. If so, it could look a bit like Mexico, but with the unique economy, it seems they would be stuck between devaluation and the (in)ability to produce staples or high-end manufactured products domestically. I've always thought Canada's post-war social democracy model would be a good option for Cuba, but hey, they're not paying me to make the decisions.
IcedCanuck Posted October 28, 2013 Posted October 28, 2013 It'll feel like you're in Bali... LOL too funny. When I was in Bali I never bothered with change because their currency is worthless!
IcedCanuck Posted October 28, 2013 Posted October 28, 2013 I don't suppose this would go along with allowing the currency to be traded on the open market. If so, it could look a bit like Mexico, but with the unique economy, it seems they would be stuck between devaluation and the (in)ability to produce staples or high-end manufactured products domestically. I've always thought Canada's post-war social democracy model would be a good option for Cuba, but hey, they're not paying me to make the decisions. I could be very wrong here but I always thought the American embargo on Cuba prevents their currency from being traded on the world market. I would love it if it were traded on the open market so I can switch my currency at home before going over there. Personally I think when they make the switch (if) there is going to be some inflation for sure.
IShotAManInReno Posted October 29, 2013 Posted October 29, 2013 As long as there is an element of tourism in an embargoed Communist Cuba there will also be a dual currency economy. The USD was replaced with the CUC. The CUC will simply be replaced by the USD again. Is that not obvious?
MrGinger Posted October 29, 2013 Posted October 29, 2013 The CUC will simply be replaced by the USD again. Is that not obvious? Says who? They could adopt the Euro.
IcedCanuck Posted October 29, 2013 Posted October 29, 2013 Says who? They could adopt the Euro. The overwhelming majority of their tourism is Canadian based so if they didn't adopt the greenback the Loonie would certainly make it even easier for us
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