is it illegal for regular cubans to possess or spend the tourist convertible pesos? If I were a cuban and I wanted a chicken, there must be an exchange rate between regular pesos and the convertible pesos, so what would stop me from taking 100 pesos and buying 50 convertible pesos (assume that’s the street value) and then going and buying a chicken? When you say the stores are in different parts of town, do you mean not all cuban businesses take regular pesos? Why not just do what mexico does and accept US dollars. I assume they do anyway - I bet there is a ton of US currency in Cuba.
Here is an excerpt from the NY Times article cited above:
I had always heard that it is illegal for money earned in the US to be spent there. Since 97% of my money is from Canadian sources, I have assumed I could just go and not spend any of the remaining 3%.
No, it isn’t illegal, and now I think some people get convertible pesos as part of their pay. I suppose in theory you could convert your Cuban pesos and buy something on the “other” market, but you wouldn’t be able to afford it. Believe me, I don’t really understand the rationale for this system myself–it has always confused me. My guess is that it’s just the de facto result of having a socialist economy so unavoidably tied to outside influences–a way of saying, “We’ll guarantee you enough to get by, but beyond that, you have to enter into someone else’s economy.” It also allows tourists and other visitors to buy tourist-type things while they’re in the country. So while the businesses that deal in convertible pesos tend to be in areas that foreigners frequent, it’s not like those are “forbidden” or anything. I guess that it’s their way of NOT becoming like Mexico, while still benefiting from the influx of hard currency from the US. If you’ve ever engaged in regular, day-to-day commerce in Tijuana (which my step-mother does), for instance, you’ll know that not only can you do business in dollars for just about everything, but that that the U.S. economy affects the prices of everything there, including essential goods. My WAG is that Cuba wants to avoid that effect.
Since 2004 US dollar notes haven’t been negotiable in Cuba, and you pay a special fee to convert US bills to Cuban pesos (as opposed to Canadian dollars or Euros).
Hah. But to tell the truth, as screwed up as NK is, I’d rather win a visit there than Cancun. At least it would be interesting, (albeit uncomfortable). By the same token, there’s a vast, rich musical culture in Havana that’s virtually unknown in the States, and I think that’s mostly because of this ridiculous travel restriction. As kaltkalt says, we need to accept the “dangers” of freedom if we want to reap its benefits. Personally, I think the “danger” of spending money in Cuba is vastly over-exaggerated, if it even exists. And by going there (as unguided tourists), we can witness all of Cuba’s problems along with the good.
No. It is not a situation like if you go to Israel and then certain Middle Eastern countries that you will get hassled. There is nothing that would compel a US Immigration and Customs Enforcement officer to prevent you from entering the US simply because you went to Cuba.