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| Caribbean-Latin America |
| U.S. Says Cuba Move to Ban U.S. Dollars Shows Embargo Working |
| 2004-10-27 |
| Cuban President Fidel Castro's decision to ban the use of U.S. dollars and charge a 10 percent fee to exchange for local currency shows an economic embargo against his country is working, U.S. officials said. A 42-year-old embargo by the U.S. is ``squeezing the regime and causing them to take extreme measures that underscore its own inherent weaknesses,'' U.S. State Department spokesman Adam Ereli said at a press briefing in Washington. The changes, slated to take effect Nov. 8th, would forbid Cubans from accepting dollars for transactions and require they use pesos instead, according to the government's resolution. The decision affects hotels, bars and car rental agencies and applies to both foreigners and local residents. Banks in Cuba will charge a commission of 10 percent for people seeking to exchange the U.S. dollars into pesos, according to the resolution. Remittances from the U.S. may have reached as high as $900 million in 2003, according to the UN commission. ``When they prevent their people from spending dollars and require them to exchange them for a 10 percent commission, that's pretty draconian,'' Ereli said. |
| Posted by:Mark Espinola |