Bangkok--Sep 30--eTurbo news
HAVANA, Cuba (eTurboNews) -- The Cuban government's move to eliminate the circulation of the United States dollar in the country began November 15.
The government is discouraging tourists from using US dollar as payment, although it is not currently strictly enforced. When exchanging to Cuban peso, the dollar is given a value 10 percent less than its currency exchange rate.
This is move to stimulate the circulation of other currencies, said Cuban officials.
They also stated that the action is being taken as retaliation to the US government for interfering with Cuba's financial affairs. "As part of the reinforcement of the embargo carried out by the Bush administration, who is determined to prevent Cuba," said President Fidel Castro in a radio and television broadcasted program.
Foreign enterprises, including the tourism sector, have reacted positively to the government's move. President Castro pointed out that the 23 airlines that operate in the country expressed their intention to cooperate in charging the flight tickets in convertible Cuban pesos. Investors have also expressed their willingness to convert their deposits from US dollars to Cuban pesos.
President Castro estimates that the use of the Cuban peso would allow the country to explore new ways of internal commerce, which went up to US$379 million in 2003. He also predicts that the Cuban peso will gradually be adopted in the international market.
Some experts have called the move "smart" due to the weakening US dollar against other currencies.
Meanwhile, officials are saying the decision to halt the circulation of us currency has had a positive impact on tourism, given that the majority of the foreign visitors who travel to Cuba come from Canada and Europe.
In order to facilitate the exchange of other international currencies, Cuba announced it will allow Japanese Yen, Mexican peso, Venezuelan bolivar with no tax, in addition to euro, Canadian dollar, pound sterling and franc.
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