Cuba Says It's Likely to Increase Money Supply

[El Presidente]

I would love to hear from those closer to Cuba than I as to what the current rumours are in relation to the deletion of the CUC (when/how).

This article doesn't really shed any light.

http://abcnews.go.com/International/wireStory/cuba-announces-details-currency-unification-25891608

[headstand]

Increase money supply = inflation doesn't it? I'm not an economist so just my amateur take on it.

[PapaDisco]

If they merely replace CUC's with an equivalent amount of Pesos worth as much as the CUC's, then mathematically there should be no inflation. However the psychology of that market would dictate inflationary behavior. Why? Because they're replacing a sought after currency with a lesser currency. Sort of like when we went from gold and silver to paper currency.

Not sure about the whole state subsidy thing for cheap CUC's affects this.

[madandana]

Money.....ya important, but i'm more concerned about the beer shortage.

[CUBANO]

Money.....ya important, but i'm more concerned about the beer shortage.

I like the way you think.

[PigFish]

Roll more cigars in more sizes, stop buying fancy boxes form abroad and sell more cigars for less money. More money comes in the door and you don't have to print as much…!

It is a novel idea… Trade me my money for the cigars that you make that I want to smoke!

Cheers! -Piggy

[Guest rob]

Roll more cigars in more sizes, stop buying fancy boxes form abroad and sell more cigars for less money. More money comes in the door and you don't have to print as much…!

It is a novel idea… Trade me my money for the cigars that you make that I want to smoke!

Cheers! -Piggy

I hate being devils advocate here, Piggy, especially noting that my cigar preferences are similar to yours..... But that's precisely what they they do most of the time - appeal to the masses and the modern trends - and leaving the tastes of loyal customers consigned to history.

[PigFish]

I hate being devils advocate here, Piggy, especially noting that my cigar preferences are similar to yours..... But that's precisely what they they do most of the time - appeal to the masses and the modern trends - and leaving the tastes of loyal customers consigned to history.

From the last data that I had Rob, 'overall' production was still down. That is what I am talking about. Stop storing tobacco and start rolling it into some cigars that I will buy again. If they are not selling out of tobacco, their model is wrong!

Always appreciate your input! -Ray

[CanuckSARTech]

I would love to hear from those closer to Cuba than I as to what the current rumours are in relation to the deletion of the CUC (when/how).

This article doesn't really shed any light.

http://abcnews.go.com/International/wireStory/cuba-announces-details-currency-unification-25891608

Recent phone calls in the past few days make no mention of this happening any time soon. Thought is that they're still in the studying-printing-more-CUP phase, so any changes may be a ways away yet.

[Fuzz]

Cuba should just replace both currencies with a new one....

[Ryan]

An article in the Havana Times on saturday states that the Cuban government has declared that 2016 will be the final year of dual currency.

That's good, I've a few CUCs at home I need to use up.

It looks like they're creating a real mess for themselves though.

http://www.havanatimes.org/sp/?p=99893

[amart]

If they merely replace CUC's with an equivalent amount of Pesos worth as much as the CUC's, then mathematically there should be no inflation. However the psychology of that market would dictate inflationary behavior. Why? Because they're replacing a sought after currency with a lesser currency. Sort of like when we went from gold and silver to paper currency.

Not sure about the whole state subsidy thing for cheap CUC's affects this.

This guy gets it

[Ted]

Cuba should just replace both currencies with a new one....

Convertible KENS_1.jpg

Lol