Cuba to end circulation of U.S. dollar by Nov 8th

From Swissinfo: Cuba to end circulation of U.S. dollar

Cuban President Fidel Castro, seeking to rid his country of the currency of his arch-enemy, says Cuba will end circulation of the U.S. dollar as of November 8 in response to tightened American sanctions.

Cubans, foreign residents and tourists will have to use locally printed convertible pesos, equal in value to the dollar, a Central Bank decree said on Monday.

"As of November 8, the dollar will not be accepted in our shops, which will only accept convertible pesos," it said.

A 10 percent commission will be charged for changing dollars into the local currency.

The government encouraged Cubans living abroad to send cash remittances to their relatives in Cuba in other currencies, such as the euro, the British pound, Swiss franc and Canadian dollar, to avoid exchange costs.

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If you�re going to Cuba, you better bring other currencies than dollars to avoid the 10 percent exchange commission. You can�t even use creditcards issued by U.S.-based banks in Cuba after November 8th. It won�t be illegal to hold dollars which have been legal in Cuba since 1993.

[edit on 2004/10/26 by Hellmutt]

There is now also an ATSNN-story.

(business) Cuba to end circulation of U.S. dollar

It seems many countries around the world are chosing to "lose" the dollar. Do any of the financial experts out there know what this will hold for the US economy?

Uhh this is going to be a huge blow to the US economy
No countries are "losing the dollar" other than cuba and countries joining the EC euro.
The weakening of the dollar is IMO a deliberate act by the US government to redress the trade defecit between the US and EU.

I had just read that the Russian bank is stopping dealing with the dollar and the Chinese are selling the dollar on mass. Not to mention that Middle East countires wanting to switch to the Euro. I also read that Japanese businesses are the stabilising force of the dollars value due to buying and selling. Obviously I am no expert, so can only go by what I have read.

But. like I said, I would like to know a financial experts opinion.

My take on this is that its a scheme to raise revenue for the regime. All dollars must be exchanged at the "official rate" which we know will be much lower than the black market rate. Castro NEEDS dollars. Cuba NEEDS freedom.