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CUBA DE-DOLLARIZES.

Article Excerpt
Cuba has abandoned the US dollar as a national currency alongside the peso. As of Nov. 8, the dollar is out and the convertible peso--faux dollars circulating on par with the dollar--is in. While the dollar still has a place in Cuba's international transactions, so does the euro, the Canadian dollar, and other hard currencies.

President Fidel Castro and top officials outlined the new monetary regimen Oct. 25. An official notice from Francisco Soberon, head of the Central Bank, said the dollar would cease to be legal tender in Cuba as of Nov. 8. Cubans as well as tourists must use only the convertible peso everywhere that payments have been required in dollars such as hotels, bars, restaurants, and taxis.

The euro continues to be acceptable in Varadero and other tourist resorts. Studies are underway to extend its use to other parts of the island. The peso continues to circulate at the current exchange rate of 26 to US$1.

Dollar holders were given until Nov. 14 to turn in their dollars for convertible pesos. After the deadline, said Soberon, Cubans could still exchange dollars but would have to pay a 10% surcharge to cover the costs and risks Cuba incurs from US aggression against Cuba's dollar use. Or, they could simply hold on to their dollars since there is no prohibition against their possession. Cubans may maintain dollar bank accounts and withdraw dollars without paying a surcharge.

Likewise, bank credit-card transactions are not subject to the surcharge nor are all...

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