The Legal Department of the Ministry of Finance and Prices answered OnCuba via email, several questions about the 10 × 1, the assumed rate of exchange in effect from the adoption of Resolution 9 of that institution, which regulates the sale of agricultural products to tourism. As published, this proportion will also be used for the salary of the employees of Special Zone Development Mariel, who bear their salaries in national currency, although their employers will pay in hard currency.
For ten being an almost equidistant number between twenty and one, the impression has spread among economists that this will be the amount by which the unifying rate will be set, from which all Cuban convertible pesos will be changed into pesos when we get to the Zero Day: the time the dual currency will be eliminated.
The Ministry of Finance and Prices offers its perspective on the issue.
– Is the provision of Resolution 9 a new exchange rate between the CUC and the CUP?
Resolution No. 9, 2013, and Resolution No. 352 of the same year that repeals it, a “compensation” of 9 Cuban pesos per convertible one was established intended for tourist facilities in the acquisition of certain states products and services in order to facilitate the promotion of national productions.
– It can be said that they are changing every CUC for ten Cuban pesos?
You cannot say that, given that this is compensation by the Cuban tourist state entities in a magnitude of 9 Cuban pesos for each CUC of expenses that have such facilities for the purchase of products and services authorized. It is a state grant to help stimulate import substitution by way of increased domestic production.
– Why this “compensation” applies and at this price? Why the official exchange rate 1 × 1 was not applied? What criteria were used for selecting the compensation?
The answers to these questions are interrelated.
The first thing is regulated in these resolutions is that the price is set by agreements between producers and tourist facilities and they determine which products and services. This implies an increase in expenditure for tourism, since previously the prices of these products and services were provided by state enterprises, which received a grant from the State Budget.
Moreover, tourist facilities operate only with convertible pesos, while producers conduct their operations in Cuban pesos.
Both resolutions refer to the current rate of 1 × 1 , so the tourist facility receives the official exchange rate set 1 × 1, more compensation from the state of 9 × 1, for the payment of goods received from producers at the agreed ‘ prices by agreement ” .
To better understand why there is compensation and how it works, read : New Rate Changes : Ten pesos for CUC ?
Author
Javier Ortiz
