Cuba Announces Revaluation of Currency

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President Fidel Castro late Thursday announced a 7 percent revaluation of Cuba's national currency, giving Cubans slightly more buying power as the communist-run island moves to reassert greater control over its economy.

The move comes four months after Cuba eliminated from circulation the U.S. dollar, which was used as legal tender for many goods and services for more than a decade.

Cuba now uses two currencies: the regular Cuban peso, which was the one revalued, and the convertible Cuban peso, which trades at 1-1 to the dollar.

While the regular Cuban peso is used for government salaries and most government goods and services, the convertible Cuban peso has been used for many other consumer goods at businesses where the dollar was once accepted.

http://www.falkland-malvinas.com/Detalle.asp?NUM=5288

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Yuan Revaluation - Euro's Big Moment?

...As China moves towards pegging the CNY to a basket of currencies or floating the Yuan, there could be a notable impact on the Euro. China is the world's second largest holder of US Treasury debt, approximately $191 billion second only to Japan and the Eurozone. A revaluation of the Yuan will force Chinese policy makers to sell a least part of their US dollar holdings and buy euros and/or yen. With the growing shift by different countries to diversify their foreign exchange reserves away from dollar to include an increasing amount of euros, this could be the single currency's big moment. So far we know that Russia will be readjusting their dollar denominated reserve holdings, South Africa and India are also suspected of dumping US treasuries while South Korea and Japan seem to be considering reserve diversification behind the scenes.

...Furthermore, a free float is not necessarily good for the US. China is a large owner of US treasuries. They have accumulated foreign exchange reserves in excess of $500 billion. They are currently the second largest purchasers of US treasuries, next to Japan. Hence, they play a pivotal role in keeping US interest rates low, supporting the US recovery. If China floats their currency, they will no longer need to accumulate foreign exchange reserves at such an aggressive pace. In fact, their demand for US Treasuries will fall significantly, which could lead to a back-up in long-term US interest rates and hence, cause a collapse in the bond market, jeopardizing the US recovery.

http://www.dailyfx.com/index.php?option=com_content&task=view&id=293&Itemid=46

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and this from Asia Times about Russia becoming the world's largest oil exporter.

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...In 2005 Russia is likely to surpass Saudi Arabia as the world's largest oil exporter. This, combined with continued contraction of global oil stocks, gives Moscow enormous leverage over international oil prices. Russia could easily push the price of crude oil above US$100 per barrel by reducing oil production. No other oil-producing country, including Saudi Arabia, has sufficient spare production capacity to counter a production cut by Russia.

By effectively controlling international oil prices, Russia could undermine US economic growth. More importantly, Russia could encourage the devaluation of the dollar by redenominating its substantial energy trade with Europe from dollars into euros. Redenomination, which is supported by both Russia and the European Union, would force Europe's central banks to rebalance their foreign exchange reserves in favor of the euro.

Rather than establishing economic and geopolitical hegemony around the world, the "war on terrorism" is making the US increasingly vulnerable to a sharp economic recession delivered to Washington by Moscow. The Bush administration should consider this when formulating plans to expand US power into Russia's traditional sphere of influence or to undermine Iran's government. Without this consideration, Washington risks an economic war.

http://www.atimes.com/atimes/Central_Asia/GC18Ag01.html

What currency do the DUer's thing Bush and Cheney have their plundered billions in?

The euro, yen or perhaps gold?
I say a combination of all three, with a larger percentage in gold.








I am not able to post yet or I'd start a poll.

:hi:

Welcome to DU!! :toast:

I grew up in the Greenpoint/Williamsburg section of Brooklyn and lived I also lived on LI in E. Islip.

Starting Friday, the convertible Cuban peso, which previously could be purchased with 27 ordinary Cuban pesos, will now be worth 25 Cuban pesos, Castro said. The decision appeared aimed at slowly eliminating one of the two currencies now circulating on the island.

The Cubaphobes use the lack of understanding of the two pesos for propaganda purposes.




Here's a little background..

Cuba: Cost of Living
http://members.aol.com/merengue123/cubaeng2.html

still up. Thanks for the link.

How ever did that *evil dictator* get 1.2 million people to march in protest on the Malecon? ;-)


1,200,000 CUBANS MARCH TO SAY "NO" TO US AGGRESSION AND "YES" TO CUBAN SOVEREIGNTY

Now this might just get interesting. When Uruguay recently inaugurated their new president, Cuba asked to be sponsored for entry into MERCOSUR. In order to be a part of MERCOSUR, the full members --Brazil, Argentina, Uruguay and Paraguay--have to agree. Can't see myself where any would object, and if Cuba is accepted, well, it really puts the monkey wrench into the USSA's FTAA agenda.

Add to this that there are two socialist front runners for president in Chile and Mexico--this is shaping up to be a very Malox year for the Bushistas. :D

All these decades with the US trying to isolate the island and then Chavez--they've only suceeded in isolating themselves--dumbest bunch to come along in quite a while--dumber than a box of rocks.

Viva Cuba!!

BUSH TO CHENEY:

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From March 14th to April 22nd,2005, the 61st session of the UN Commission on Human Rights will take place in Geneva, where once more the US government will try to pass a resolution against Cuba.

It is a manipulated and selective treatment of the topic to justify the intensification of the policy of blockade and aggressions by the greatest power on the planet against a small country, in violation of International Law. The Commission must represent every United Nations member State and ensure respect for the rights of all men and women worldwide. It is significant, however, that within the Commission, during the last year sessions, it was not possible to evaluate, not even to debate, the atrocious violations of human rights taking place in US prisons in Abuh Ghraib and Guantanamo.

The US government has no moral authority to set itself up as a judge of human rights in Cuba, where there is not a single case of missing persons, torture or extra judicial killing and where internationally recognized health, education and cultural levels have been reached despite the blockade.

We request the countries represented in the Commission not to allow it to be used to legitimize the Bush Administration's anti-Cuban aggressiveness, when the current war-mongering policy led by Washington makes predictable an eventual escalation of very serious consequences. We also call on journalists, writers, artists, professors, school teachers and social activists to address their governments and express by every possible means that this dangerous maneuver stop.

http://www.scoop.co.nz/stories/WO0503/S00268.htm

Here's another back at ya. :hi:

Its a little old (right after the "special period" and before the cash purchases of US agri products, plus the Cuban economy has expanded considerably since then), but still representative of the determination & dedication of Cubans - and representative of the cruelty of US policy.

The Human Cost of Crippling Castro
http://slate.msn.com/default.aspx?id=2674

I learned the United States cuts off supplies in two ways. First, sale of goods with U.S.-made or patented parts--which include most new drugs and medical devices--is embargoed under the Trading With the Enemy Act. As U.S. companies merge with foreign competitors, the ban covers more and more. For example, according to the Washington Post, U.S. acquisitions removed Cuba's suppliers for pacemakers and several chemotherapy agents. Companies can seek a permit for medical sales, but hardly any have because of the unmanageable requirements.

Second, the 1992 Torricelli Act cut European supplies by prohibiting ships that dock in Cuba from entering U.S. ports for six months. Few shippers are willing to lose access to the world's largest market for the sake of this tiny country. The act also outlawed food sales to Cuba. Only Libya faces a similar ban. (Iraq and North Korea can at least barter for food.)

It's disingenuous to argue that the embargo doesn't actually hurt many people. After all, the point of the ever-tighter provisions is to cut off goods--including food and medicine. But imposing suffering can be justified if it averts greater suffering or serves a larger good. And the embargo once served worthwhile purposes--forcing the Soviet Union to spend resources propping up Castro and denying Cuba resources to foment revolution elsewhere. Now, however, Cuba poses no threat to anyone.

It's conceivable we could justify continuing to cause pain and death if the embargo fueled enough discontent to cause Castro's overthrow. But it shows no sign of doing so. The relationship between political freedom and economic conditions seems far more complicated than advocates of free trade or the embargo seem willing to admit. I doubt that either policy can bring Castro down. Meanwhile the embargo continues to exact its human costs.