Apr 07, 2022
In Welcome to the Cars Forum
Within this framework, two different exchange rates were set: one for the population and another for the business sector. The first has remained stable in recent years at an equivalent of 24 CUP per CUC, for which exchange houses were established on Whatsapp Mobile Number List throughout the country (CADECA). The second was anchored to the prevailing exchange rate between the dollar and the CUP, that is, 1 dollar=1 CUC=1 CUP. up to 2004, it was guaranteed that CUCs would be issued that were backed by the dollar, that is, for each CUC in circulation there was a dollar backing it. After that date, that convertibility ceased to exist and the CUC became an overissued currency. This corporate exchange rate, clearly overvalued, has distorted the national accounts and has privileged, for decades, purposes contrary to those Whatsapp Mobile Number List officially declared. When the objectives of economic policy are Whatsapp Mobile Number List the reform of the 1990s (even much earlier) to the present, the desire to promote exports and substitute imports is repeated. However, the fixed exchange rate is a policy instrument that promotes opposite effects. This has generated that, for example, export activities sometimes require subsidies, since when calculating their income and expenses using the exchange rate of 1 dollar = 1 CUP, their costs can be significantly higher than their income, with what which Whatsapp Mobile Number List demands support from the state budget. In the same way, it turns out that, artificially, it is more profitable to buy food abroad that could well be produced in Cuba, such as fruit, vegetables, milk, among others. Another clear example is that it is more profitable for a peasant to sell his productions in the agricultural market than to export.