Cuba goes over to the Euro
26 October 2004. Inspired by .
Things are, if you even thought it possible, getting tougher for Cubans with the announcement that US dollars are to be made illegal. Somewhat bizarrely, sterling, swiss francs and euros aren't. (For Cuba's reliance on the US dollar, see my article for the Big Issue earlier this year)
It strikes me that there's a few probable reasons why this is happening.
1) To make people actually want the convertible peso, which currently no-one does (they don't trust the government not to devalue it). This could in fact be so that the government can then devalue it.
2) To allow the money changers and banks to scam a better commission - currently the convertible peso is 1:1 with the dollar.
3) To piss off Cuban exiles.
4) Castro has significant shares in Thomas Cook bureaux de change.
I'm no economist (ok, I have an A-level, but I'm not sure I'm qualified to practice or preach), but points 1 - 3 seem about right.