Havana

[QUOTE=GringoTrooper;2497110]I just read in the news that the government of Cuba is closing all Western Unions. I hope I'm wrong, but that's terrible for the country.[/QUOTE]May be a good thing. Allegedly the Cuban government is keeping portions of the money, that people are sending to their families. For example, the USD to CUC is $1 = 1. 70 CUC, if you send $100 to someone down there, they should get 170 CUC, well the government is only giving them 100 CUC, and keeping the other 70 for themselves. Very messed up!

[QUOTE=ChrisH;2497233]May be a good thing. Allegedly the Cuban government is keeping portions of the money, that people are sending to their families. For example, the USD to CUC is $1 = 1. 70 CUC, if you send $100 to someone down there, they should get 170 CUC, well the government is only giving them 100 CUC, and keeping the other 70 for themselves. Very messed up![/QUOTE]USD1=CUC1. 50 nowadays in the black market. The official exchange rate is USD1=CUC1 done at the bank, cadeca or money transfers for businesses.

[QUOTE=DiavelLoco;2497270]USD1=CUC1. 50 nowadays in the black market. The official exchange rate is USD1=CUC1 done at the bank, cadeca or money transfers for businesses.[/QUOTE]Ok, Simon was telling me 1 USD= 1. 70 CUC, maybe through the people we deal with on the streets.

[QUOTE=GringoTrooper;2497110]I just read in the news that the government of Cuba is closing all Western Unions. I hope I'm wrong, but that's terrible for the country.[/QUOTE]Western Union has been closed for awhile now outside of Havana. So lately, I've been recharging my girls phone once a month and she can trade out phone credits to her friends and family for food or cash. But now, the Cuban government is cheating them out of their phone recharges. It's getting crazy down in Cuba.

[QUOTE=ChrisH;2497233]May be a good thing. Allegedly the Cuban government is keeping portions of the money, that people are sending to their families. For example, the USD to CUC is $1 = 1. 70 CUC, if you send $100 to someone down there, they should get 170 CUC, well the government is only giving them 100 CUC, and keeping the other 70 for themselves. Very messed up![/QUOTE]Don't think it quite works that way. The black market (street) exchanges at whatever rate is determined on the black market. The government exchanges at the official rate. The only way they would get the black market rate would be to sell their dollars on the black market. Doubt they are doing that because they need the dollars to pay for imports. Getting CUC's would not help the government. They need dollars. They can print all the CUC's they want, but can't (as far as we know) print dollars. There is no trade in CUC's on the world market, so outside of Cuba they are useless.

There is a possibility though that the street market is really an alternative market being exploited by the government. They can buy dollars for whatever they have to pay, since they print CUC's. Since they can print CUC's there is no real cost to them. Just that over time it creates inflation and so they have to pay more and more for the limited dollars.

[QUOTE=DiavelLoco;2497270]USD1=CUC1. 50 nowadays in the black market. The official exchange rate is USD1=CUC1 done at the bank, cadeca or money transfers for businesses.[/QUOTE]The black market is the black market. There are no official rates. Just spot market rates. Many avenues where the $$$ will end up at. Some legal and some illegal.

The official rates are used by official banks and financial companies.

[QUOTE=Zeos1;2497408]Don't think it quite works that way. The black market (street) exchanges at whatever rate is determined on the black market. The government exchanges at the official rate. The only way they would get the black market rate would be to sell their dollars on the black market. Doubt they are doing that because they need the dollars to pay for imports. Getting CUC's would not help the government. They need dollars. They can print all the CUC's they want, but can't (as far as we know) print dollars. There is no trade in CUC's on the world market, so outside of Cuba they are useless.

There is a possibility though that the street market is really an alternative market being exploited by the government. They can buy dollars for whatever they have to pay, since they print CUC's. Since they can print CUC's there is no real cost to them. Just that over time it creates inflation and so they have to pay more and more for the limited dollars.[/QUOTE]Do the chicas accept straight USD cash or do they insist on CUCs? I am unclear how all this works having nver been to Cuba, but what to locals do with the cucs once they earn it from you?

Sounds as though CUCs are the officially gov't sanctioned tender there. But I am sure actual USDs are more valuable. The black market to me just speaks to the economic strife they are in right now. But as we know communist dictatorships are answerable to noone.

[QUOTE=GeneHickman;2497562]Do the chicas accept straight USD cash or do they insist on CUCs? I am unclear how all this works having nver been to Cuba, but what to locals do with the cucs once they earn it from you?

Sounds as though CUCs are the officially gov't sanctioned tender there. But I am sure actual USDs are more valuable. The black market to me just speaks to the economic strife they are in right now. But as we know communist dictatorships are answerable to noone.[/QUOTE]There are two official currencies, the CUC and the moneda nacional, the normal pesos (approximately 26 pesos to one CUC). CUC's were set up originally to accommodate the tourism industry, but have evolved to be just a second currency, and one that I hear is being eliminated. But not immediately. CUC's (convertible pesos) were designed to be always worth $1 US, and since they are not traded on any market outside of Cuba the government simply sets that as the value. So when I go with Canadian dollars I get the US / Canada exchange rate on my Canadian, except in CUCs. Less a small conversion fee around 1. 5%. If I took American dollars they charged an additional "penalty" of 10%, even though the CUC is equal to 1 US dollar (for calculation purposes).

US dollars were never in circulation in the past. You could not buy anything with them (generally speaking) and could only exchange them at official places (Cadecas / banks). So for the Cuban people they had to go to the bank or cadeca, line up, and exchange any dollars they received for either CUC's or regular pesos. All of that seems to be changing from what I am reading here. Dollars may be circulating as a useable currency, which then encourages a black market and prices in dollars versus either form of pesos.

All of the national goods, subsidized food, etc. Were only payable in normal pesos in the past. And peoples pay was in pesos, etc. You could not pay for a lot of things with CUC's or dollars. Only in regular pesos. That is if you were a national.

CUCs were just a way for the Cuban government to get foreign currency, which they need. For every dollar, Euro, Canadian dollar, that came in to the country they issued 1 CUC per USD equivalent. Tourists would then spend these CUC's, and eventually Cuban people could pretty much spend them and use them as well. So I think the current push is just an extension of that. The government is desperate for foreign exchange, so they are printing up more CUCs and probably actively participating in the black market buying dollars (dollars that come into the country directly). This creates inflation pretty quickly, so in Cuba, and only in Cuba, the value of the CUC versus the black market dollars is dropping. Hence the numbers you are seeing. And the trick they have already said they are going to do is eliminate the CUC, and force people back to the peso, and the exchange rate will be set by the government. At around 25 pesos per CUC. Not sure of the exact number. And since they set most prices for everything. In pesos. They get their money back. And then they can crack down on the use of the USD.

[QUOTE=Zeos1;2497573]There are two official currencies, the CUC and the moneda nacional, the normal pesos (approximately 26 pesos to one CUC). CUC's were set up originally to accommodate the tourism industry, but have evolved to be just a second currency, and one that I hear is being eliminated. But not immediately. CUC's (convertible pesos) were designed to be always worth $1 US, and since they are not traded on any market outside of Cuba the government simply sets that as the value. So when I go with Canadian dollars I get the US / Canada exchange rate on my Canadian, except in CUCs. Less a small conversion fee around 1. 5%. If I took American dollars they charged an additional "penalty" of 10%, even though the CUC is equal to 1 US dollar (for calculation purposes).

US dollars were never in circulation in the past. You could not buy anything with them (generally speaking) and could only exchange them at official places (Cadecas / banks). So for the Cuban people they had to go to the bank or cadeca, line up, and exchange any dollars they received for either CUC's or regular pesos. All of that seems to be changing from what I am reading here. Dollars may be circulating as a useable currency, which then encourages a black market and prices in dollars versus either form of pesos.

All of the national goods, subsidized food, etc. Were only payable in normal pesos in the past. And peoples pay was in pesos, etc. You could not pay for a lot of things with CUC's or dollars. Only in regular pesos. That is if you were a national.

CUCs were just a way for the Cuban government to get foreign currency, which they need. For every dollar, Euro, Canadian dollar, that came in to the country they issued 1 CUC per USD equivalent. Tourists would then spend these CUC's, and eventually Cuban people could pretty much spend them and use them as well. So I think the current push is just an extension of that. The government is desperate for foreign exchange, so they are printing up more CUCs and probably actively participating in the black market buying dollars (dollars that come into the country directly). This creates inflation pretty quickly, so in Cuba, and only in Cuba, the value of the CUC versus the black market dollars is dropping. Hence the numbers you are seeing. And the trick they have already said they are going to do is eliminate the CUC, and force people back to the peso, and the exchange rate will be set by the government. At around 25 pesos per CUC. Not sure of the exact number. And since they set most prices for everything. In pesos. They get their money back. And then they can crack down on the use of the USD.[/QUOTE]Back in 1997 you could only pay with USD in the stores they had set up at the time. How do I know that? I went there at that time and used USD in the stores, as a matter of fact, I didn't exchanged any USD into CUP at all.

[QUOTE=RebelMonger;2497754]Back in 1997 you could only pay with USD in the stores they had set up at the time. How do I know that? I went there at that time and used USD in the stores, as a matter of fact, I didn't exchanged any USD into CUP at all.[/QUOTE]Yes those crafty Cubans have been collecting dollars all along. Now the government needs those dollars and they have opened up many stores selling luxury and now everyday goods that only take dollars. There goes their fake exchange rate. Our dollars will go even farther than before down there now.

My chica called last night and said that Havana, and the rest of Cuba is open for business!

[QUOTE=TyDown;2501227]My chica called last night and said that Havana, and the rest of Cuba is open for business![/QUOTE]False. I just messaged my Airbnb owner and they have heard nothing. Last I saw was November 4th opening.

[QUOTE=SmotPoker;2501280]False. I just messaged my Airbnb owner and they have heard nothing. Last I saw was November 4th opening.[/QUOTE]OK but now it's Nov. 10th, not understanding what you meant, if that's what you heard then it is possible, and if I'm correct he knows a lot about Cuba, why dismiss what he said?

[QUOTE=SmotPoker;2501280]False. I just messaged my Airbnb owner and they have heard nothing. Last I saw was November 4th opening.[/QUOTE]Yep, you are correct, Havana is not open yet, possibly this weekend.

[QUOTE=SmotPoker;2501280]False. I just messaged my Airbnb owner and they have heard nothing. Last I saw was November 4th opening.[/QUOTE]Okay, I guess you guys just think I sit around pulling shit out of my ass. I post here to help with useful knowledge that may help you. My girl, who lives in Cuba, called me a couple days ago and said they are opening up Cuba again for tourism. I have no reason whatsoever to doubt what she is telling me, I've known her for years.

Cuba is open.

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