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Resolution No. 80/2004
WHEREAS:
In the last few months the U.S. government has
intensified its economic war on the people of Cuba
by dictating new measures aimed at systematically
hindering the external financial flows of our
country, thus causing serious damage and creating
grave risks for the exercise of our normal
international financial activity.
WHEREAS:
As part of this policy, the U.S. government has
increased its pressure on and threats to foreign
banks to prevent Cuba from depositing the U.S.
dollars spent by the population and foreign visitors
in Cuban establishments that sell merchandise or
lend services in that currency abroad in order to
meet its commercial obligations.
WHEREAS:
Recently, the assistant deputy secretary for Western
Hemisphere Affairs attached to the Department of
State announced the creation of a “Pursuance of
Cuban Assets Group” composed of officials from
various government agencies to interfere with and
halt the flow of hard currency to and from Cuba,
which constitutes a new aggression unprecedented in
the history of international financial relations.
WHEREAS:
The situation thus created demands the urgent
adoption of measures to protect the country’s
interests faced with the serious damage that such
actions will cause it.
WHEREAS:
In its Article 36 (Clause a]) Decree Law No. 172
“From the Central Bank of Cuba, “ dated May 28, 1997
establishes that the faculties of the president of
the Central Bank of Cuba include that of drawing up
resolutions, instructions and other dispositions
necessary for the execution of the functions of the
Central Bank of Cuba, with an obligatory nature for
all agencies, bodies, enterprises and state economic
or other associations, cooperatives, the private
sector and the population.
WHEREAS:
The person with that faculty was designated
government minister and president of the Central
Bank of Cuba by the Council of State Agreement dated
June 13, 1997.
THEREFORE:
In the execution of the faculties conferred upon me,
and in prior consultation with the president of the
Councils of State and Ministers;
I
RESOLVE:
I
“On the holding by the population of U.S. dollars
and other freely convertible currencies that
circulate in the country”
Article 1:
The population may maintain in its power any
quantity of U.S. dollars or any other freely
convertible currencies without restrictions of any
kind, as is the case to date.
II
“On cash payments in freely convertible currency,
starting November 8, 2004”
Article 2:
From November 8, 2004 all entities that currently
accept U.S. dollars in cash on charging for their
transactions in national territory, will only accept
convertible pesos.
This measure
is to be universal, both for the population and for
visitors from abroad. Its application covers:
stores, hotels, restaurants, bars, cafeterias,
taxis, car hire agencies, and any other entity
currently charging in U.S. dollars in cash.
As has been
previously stated, the application of this measure
does not imply any kind of limitation on holding
U.S. dollars or any other freely convertible
currency.
Article 3:
The convertible peso will maintain its conversion on
the basis of one convertible peso to one U.S.
dollar.
Article 4:
From November 8, 2004 persons wishing to acquire
convertible pesos with U.S. dollars in cash will
have to pay a 10% surcharge as compensation for the
costs and risks to the national economy originating
with the handling of U.S. dollars as a consequence
of the above-mentioned U.S. government measures.
The
remainder of hard currencies exchangeable in Cuba:
the euro, Canadian dollar, GBP sterling and Swiss
francs can be exchanged for Cuban convertible pesos
without any tax whatsoever, taking international
market exchange rates as a reference point and
always considering one convertible peso as equal to
one U.S. dollar.
In time,
bank branches and Exchange Bureaus will be able to
change other hard currency as part of their
services.
From
November 8, 2004, there will also be a 10% surcharge
on U.S. dollars in cash used to buy Cuban pesos in
the Exchange Bureaus. Cuban pesos can be purchased
with euros, Canadian dollars, GBP sterling and Swiss
francs as is the case to date, without any 10%
surcharge.
Article 5:
Euros will still be accepted in the tourism
complexes that currently do so.
III- “On the
use and operation of bank accounts and credit cards
in freely convertible currency by Cuban or foreign
persons”
Article 6:
Current U.S. dollar accounts held by the population
in Cuban banks are totally guaranteed. Withdrawals
in U.S. dollars or convertible pesos from such
accounts can be made at any point, with no time
limit and without any kind of restriction, according
to the client’s choice, at the present rate of 1 to
1, and the 10% surcharge will not be applied. From
November 8, 2004, cash deposits in U.S. dollars in
such accounts will not be accepted. Those accounts
can receive funds via bank transfers in any freely
convertible currency, as well as receiving cash
deposits in convertible pesos, Canadian dollars, GBP
sterling, and Swiss francs, taking the international
market exchange rates as a reference.
The same
dispositions laid out in the last paragraph will be
applied to current U.S. dollar accounts held by
foreigners in Cuban banks.
Article 7:
From November 8, 2004, persons wishing to open new
accounts in U.S. dollars or constitute deposit
accounts in that currency will be able to do so, but
deposits and withdrawals can only be made in U.S.
dollars cash in these new accounts.
Article 8:
Accounts in convertible pesos will continue to enjoy
all the bank guarantees and services presently
available. From November 8, 2004 these accounts will
not accept U.S. dollar cash deposits.
Article 9:
Current deposit accounts and savings certificates in
U.S. dollars and convertible pesos are totally
guaranteed, they are not subject to the 10%
surcharge and will maintain the conditions agreed by
the holder at the moment of their constitution. The
principal and interest accrued in deposit accounts
or savings certificates in U.S. dollars in force on
November 7 can be collected in U.S. dollars or
convertible pesos when they are due, according to
the client’s choice, at the rate of 1 to 1 without
the application of the 10% surcharge, or converted
into convertible pesos deposit accounts at the rate
of 1 to 1 without the 10% surcharge being applied.
These deposits can be renewed as many times as the
client wishes without losing these prerogatives.
Article
10: Operations made
with credit or debit cards accepted in Cuba, whether
for the realization of payments or cash withdrawals
can continue as is the case to date without any 10%
surcharge.
IV- “On the
use of cash and the operation of bank accounts in
convertible pesos by private individuals”
Article
11: From November 8,
2004, U.S. dollars in cash will not be accepted into
the current accounts maintained by trading
associations based on joint or foreign capital, and
foreign representations in Cuba, including
diplomatic ones. At the request of the account
holder, withdrawals can be made in U.S. dollars cash
or in convertible pesos without applying the 10%
surcharge. Exceptionally, the Central Bank of Cuba
will be able to authorize cash deposits in U.S.
dollars without applying the 10% surcharge into the
accounts of certain of the aforementioned holders,
but in that case the 10% surcharge will be applied.
Article
12: In terms of
accounts in convertible pesos held by state
enterprises, trading societies with 100% Cuban
capital, budgetary units and other authorized
agencies, cash may continue to be withdrawn in line
with the existing regulations. From November 8,
2004, these accounts will not accept cash deposits
in U.S. dollars. Exceptionally, the Central Bank of
Cuba can authorize cash deposits in U.S. dollars for
certain of the above-mentioned account holders, but
in such cases the 10% surcharge will be imposed.
V-
“Locations authorized for the exchange of currency”
Article
13: From October 28,
2004, the acquisition of convertible pesos with U.S.
dollars can be undertaken in any of the following
locations:
•
Exchange Bureaus, They can likewise change
euros, Canadian dollars, Swiss francs and GBP
sterling, taking as their reference point
international market exchange rates.
• Bank
branches. They will
change only amounts of 10 U.S. dollars or over,
except in municipalities where there are no Exchange
Bureaus. They can also change euros, Canadian
dollars, Swiss francs and GBP sterling, taking as
reference the rates of exchange on the international
market.
•
Selected hard-currency stores and other authorized
establishments. Only
convertible pesos can be acquired in these places in
exchange for U.S. dollars, in amounts of 10 U.S.
dollars or more.
• Hotels.
They will also exchange euros, Canadian dollars,
Swiss francs and pounds sterling, taking the rate on
the international market as their reference. They
will offer exchange services only to their clients.
From October
28 to November 7, 2004, convertible pesos can be
acquired with U.S. dollars without the application
of the 10% surcharge. From November 8, 2004 the
aforementioned surcharge will be applied.
Article
14: Transactions for
acquiring U.S. dollars with convertible pesos can be
made in the Exchange Bureaus, bank branches and
hotels. The last is only for their clients.
Additionally, visitors from abroad will have the
option of changing convertible pesos for U.S.
dollars or other accepted currencies at the
international airports.
Article
15: Hotels, selected
hard-currency stores and other authorized
establishments will have a license from the Central
Bank of Cuba for their money changing operations.
VI—“Entry into
effect”
Article
16: The present
resolution will come into effect on October 28,
2004, except in the aspect related to transactions
effected solely in convertible pesos and the
application of the 10% surcharge on the use of the
U.S. dollar, which will come into effect from
November 8, 2004.
Article
17: the measures
established by this resolution only cover
transactions made within national territory and in
no case will prevent or hinder the execution of
guarantees granted by Cuban financial institutions
to foreign entities, or the availability of funds in
freely convertible currency needed to honor
obligations contracted by Cuban financial
institutions with foreign entities.
TRANSITORY DISPOSITIONS
FIRST:
The dispositions of Article 6 of this resolution
will also apply to U.S. dollar accounts opened
between October 26 to November 7, 2004.
SECOND:
Bank branches throughout the country, excepting
those of the BFI and the BICSA in City of Havana,
will attend to the business sector from October 28
to November 5, 2004 only until 12:00 midday. From
that time, the full capacity of these branches will
be devoted to lending banking services to the
population and to effecting money exchange
transactions. Additionally, bank branches throughout
the country, except for those of the BFI and the
BICSA in City of Havana, will open on Saturday
November 6 and Sunday, November 7, 2004, from 9:00
a.m. to 3:00 p.m. to lend the population the
services mentioned above.
HERBEY
NOTIFIED are the
Ministry of Finance and Prices and the Ministry of
Economy and Planning, the Ministry of Tourism and
the presidents of the Credit and Commerce Bank, the
International Financial Bank Ltd, the International
Commercial Bank Ltd, the Metropolitan Bank Ltd, the
Popular Savings Bank, the New Banking Group Ltd,
Cadeca Ltd and the directors of Issuing and Assets
and of the Treasury, both attached to the the
Central Bank of Cuba.
HEREBY
COMMUNICATED to the
executive secretary of the Council of Ministers; the
heads of the State Central Administration Agencies;
the president of the National Assembly of People’s
Power; the presidents of the Provincial
Administration Councils of People’s Power; the
attorney general of the Republic; the president of
the Supreme People’s Court; the first vice
president, the vice presidents, the superintendent,
the auditor and the directors of the Central Bank of
Cuba; and those companies and individuals who should
be aware of the same.
TO BE
PUBLISHED in the
Gaceta Oficial of the Republic of Cuba.
TO BE
ARCHIVED as an
original in the Central Bank of Cuba Secretariat.
ANNOUNCED
in the City of Havana, on the 23rd day of the month
of October, 2004.
Francisco
Soberón Valdés
Minister/President
Central
Bank of Cuba.
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