Pleasant "Devalued CUC" surprises

[cbob]

Just home from a week on That Special Island and it was (ho hum) yet another trip with flawless blue skies daily, hot sandy beach, rum flowing like water and -ah yes- dozens of Tasty Island Treats (TITs) to sample.

One thing that has changed is the prices of a box of cigars. I'm used to having the price as marked converted to USD so it can be charged to my VISA (VISA don't know from Cuban money) and this was done, for many years, at a rate of 1.112 USD/CUC. Last week it was only 1.03. I'm guessing that it will affect you folks on the right-hand side of The Pond as well because there will also be fewer USD on each box converted to YOUR local currency by VISA or MC.

[PoohBore]

Is this the removal of the surcharge on the usd exchange rate? I've noticed the published GbP rate has gone from 1.45 to 1.6 on the central Cuban bank website

[Simon-JG-hr]

I thought that there was news a couple of months ago that the Cuban government had intentionally devalued their currency. If I remember correctly, then that would explain the universal increase in value for us foreigners.

[Simon-JG-hr]

Here we go: http://www.businessinsider.com/cubas-central-bank-devalues-convertible-peso-to-match-the-dollar-2011-3

Interesting that they have only devalued the CUC, used primarily by us foreigners (whether tourists or businesses); the 'local' currency has kept the same value.

The BBC report adds that there will remain a 10% tax on USD exchanges.