Michelle J. Price

Elian GonzalesRefugees escaping Cuba

Street Musicians

Convertible Peso

Traditional Peso

US Dollar

Euro

• Government Owned

• Havana, Cuba

• Prints both traditional and convertible pesos

• Reorganized May 1997

http://www.bc.gov.cu/English/home.asp

• Diplotiendas/Dollar Stores

• Black Market

Cuba's GDP Per Capita

3.3 4.36.6

3.80.3

-4.8

1.2 -0.2-4

-14.7

-25.7

-16.5

1.4 2.88.1

2.9 0.8

6.44.92.1

-30

-20

-10

0

10

Yea

r

Year

GD

P G

row

th

Cuba's GDP Per Capita

1982 20011989 1994

Dictator for over 40 years Minister of Industry

1960 2004

US imposes trade embargo: Cuba’s quest

to support their own economy begins.

Cuban gov’t nationalized agriculture

and industry and expropriated US businesses w/o compensation.

1994 Convertible peso introduced.

1965 Guevara leaves Cuba. Economy, on verge

of collapse, returned to sugar industry.

1988 Soviet Union stops trading with

Cuba.

1993 US dollar legalized

Effective 27/10/2004

British Pound GBP 1.8376

Canadian Dollar CAD 0.8167

Swiss Franc CHF 0.8341

Yapanese Yen JPY 0.9365

USA Dollar USD 1.0000

Mexican Peso MXP 0.0825

Danish Krone DKK 0.1720

Norway Krone NOK 0.1551

Euro EUR 1.2786

Australian Dollar AUD 0.7455

“Convertible” CUC 1.0000

Cuban Peso

• Can “trade in” convertible pesos for dollars, etc.

• Could save/invest convertible pesos

• 10% Tax on dollar purchases

Giving value to the convertible peso

Strengthening the convertible peso or weakening the economy?

November 8, 2004