Cuban convertible peso
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History
From 1993 until 2004, the Cuban economy was split between the Cuban peso, used mainly by Cuban citizens for staples and non-luxury items, and the U.S. dollar in combination with the convertible peso, which was used in tourism, and for luxury items. On November 8, 2004, the Cuban government withdrew the U.S. dollar from circulation, citing the need to retaliate against further U.S. sanctions. After a grace period ending on November 14, 2004, a 10% surcharge began to be imposed when converting U.S. dollars into convertible pesos. This measure helped the Cuban government collect much needed hard currency.Historical exchange rates
From its introduction until 2005, the convertible peso was pegged to the U.S. dollar at 1:1. On March 24, 2005, the central bank increased the value of the convertible peso by 8%, making one convertible peso worth 1.08 U.S. dollars.The 10% tax is still applied in addition to this 8% increase, meaning that one convertible peso will cost almost US$1.20. This tax is not applied to other currencies.
See also
External links
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