By ANITA SNOW, AP

HAVANA (AP) - Cuba announced Monday that U.S. dollars will no longer be accepted at stores or other businesses on the communist island starting next month in a move that will radically change the way business has been done there over the past decade.

With President Fidel Castro looking on, his chief aide Carlos Valenciaga and state television personality Randy Alonso read the resolution by Cuba’ Central Bank.

The measure called for all such transactions to be done in a local currency known as convertible Cuban pesos, starting Nov. 8.

The government said the measure was necessary to protect its economy in the wake of stepped up measures by the U.S. government to punish banks that ship dollars to Cuba, which has been under an U.S. trade and financial embargo for more than 40 years.

Cubans and others on the island will still be allowed to hold U.S. dollars in unlimited quantities. But beginning Nov. 8 they must be changed into convertible pesos with a 10 percent change at banks or changing houses to be used at businesses across the island.

The Cuban dollar is worth nothing on the international market.  It literally has no “peso” (weight).  It is not traded internationally because of the lack of faith in the economic system of Cuba, and their terrible credit rating.  This new move may be an attempt by the Castro government to gain some legitimacy for their currency on a one-to-one conversion rate, with dollars backing the new notes. And, as pointed out below, garner additional income on the conversion. 

One thing for is for sure, the new “convertible” notes will not be the bills stuck away in a sock by campesinos and held for the long term, or rainy day.

Such economic slight-of-hand by unstable regimes only strengthens the black market, as it always has. 

  I surely hope that people aren’t getting me mixed up with the poor missinformed characture a few statements above on this page. Castro definately shouldn’t be in power, or anyone else who lets his self pride become a barrier for the citizens of Cuba. Cuba is a beautiful country with trenendous opperunities for growth if only the Cuban and American governments would stop acting like spoiled children. I have been to Cuba and I will be going back. The whole situation is shamefull. It does seem odd though that the U.S. has no problem sticking their noses in the affairs of very far away countris like Iraq & Afghanistan but are afraid to %&#! with someone close to their shores. And if you are thinking it you’re probably right. They would like Cuba to be another one of their States.

  How can anyone write anything without showing one piece of proof to back it up ? How can this forum print it? The boy who printed the evasive article above must know how Marilyn Monroe really die also. The introduction of the Euro dollar does seem to have been purposely steered towards balancing world economy, which is in itself a fictional goal. If and when the U.S.A. is gone, it surely will be replaced by another. You might thing that all men are created equal and that all dollars & pesos were also but it’ not true and never will be.Do you think that a peso is even a peso when you have some Cubans killing themselves to earn a few yet just miles away from them the RICH Cubans are lighting up their cigars with Cuban money as a joke.This I witnessed myself on holidays two summers ago.The concept of having to be better than ones neighbour is the same no matter what country you go to or what money that they use. As far as the Federal Bank theory goes IT DOESN"T MAKE ANY DIFFERENCE ! The Euro will fail. That’ why it isn’t used by most. To prove my point, go to your bank and ask for a $5 Euro bill. I had to for a money order last X-mas . I live in Niagara Falls, Canada and the bill had to be ordered from Toronto at almost triple the price I was led to believe.Some things never change and if they do it won
t be in ( ONE ) lifetime.

$300,000,000 Fidel uses to help maintain every Cuban in Cuba,or do you think they eat and live for free?

Someone has to pay for everything in Cuba and that would be Fidel,is it not?

Now please dont come on here to tell us how little Cubans have,even though little,they have what they need,water,power,rations,health care and a great education etc.

It is not a question of “if” but rather “when” the U.S. dollar will collapse.  The current U.S. economic situation is unsustainable.  Any money manager would not be doing his job unless he reduced as much as possible any exposure to U.S. dollars.  It is basic economic sense for Cuba (and for anyone else) to get rid of it’ U.S. money.  In a classic example of shooting one’ self in the foot, the U.S.  has discredited its $ as a reserve currency by hassling banks who handled U.S. $ for Cuba.  The world is beginning to move to the euro as the international currency of choice,  Cuba is just ahead of some other countries.

Cubans have what they need?  Young Cuban, you need to spend more time on the island! Water, yes. Electricity, sometimes. rations - not even enough to cover the basics! health care, yes, medicine, no! A great education - not any more. Good, maybe but not great. And at what a price! Allegedly free, but it comes at a price: slave labour for the rest of your life: work where the government tell you to work, at a salary of of what, 400, or maybe 500 pesos a month. Cuban pesos, that is, not convertable. So what, maybe $30, $40 a month.

Level10, those are real gripes, but if you are from the USA, the real problem is that you’ve all gone soft and don’t know how to use your unions, as they are in the pockets of corporate America and the politicians. Shake ‘em up, I say. Get in line with the rest of the free world: 28 - 40 days paid anual leave, and decent salaries so that you don’t have to hold three jobs just to pay the rent, and cut the maximum amount of earnings that the CEO’ can get.