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Article: New foreign-exchange regs apply to banks, state entities. (Finance).(Central Bank's changes to foreign-exchange controls )
- Article from:
- CubaNews
- Article date:
- August 1, 2003
- Author:
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On Jul. 16, Cuba's Central Bank enacted new foreign-exchange controls for all Cuban banks and state enterprises.
The new regulations, intended to "ensure efficient use of financial resources," establish the peso convertible as the only means of payment to denominate and execute transactions now carried out by Cuban entities in U.S. dollars or other foreign currency."
The regs respond to Cuba's hard-currency crunch brought on by reduced sugar and tourism income, and low economic growth. In a sense, they formalize a phenomenon that has grown in the past two years: the strict husbanding of all available foreign exchange to pay for essential imports, ...