Iranian Rial

[screwball]

 

“However, until CBI is not sure that everything is ready, it will naturally not go forward with the plan,” he said in response to concerns that while some sanctions still persist, rate unification will be meaningless and may serve only to increase forex rates.

Assuring that CBI is in complete control of the situation, Seif reiterated his past pledge that CBI plans to unify the rates by March 2017.

“Since we have the means to execute the plan on schedule, there is no need to worry and businesses can rest assured that economic stability has always been among our most serious goals,” he said.

 

ready?yes I am! No your not! Yes I am! Lol...

[screwball]

“To unify the forex rates, CBI has begun various procedures and is moving forward according to the circumstances,” Seif, who has travelled to Vienna on the invitation of his Austrian counterpart, was quoted as saying by IBENA.

[screwball]

Germany Eyes €10b in Trade With Iran

 

Managing Director of Iran-Germany Chamber of Industry and Commerce Rene Harum says trade between the two countries is expected to reach €5 billion in 2017 and €10 billion in the upcoming years.

Speaking at the first meeting of the joint chamber in Tehran on Wednesday, Harum said the value of bilateral trade stood at €2.5 billion in 2015, IRNA reported.  He said Germany is willing to become Iran’s number one trading partner, replacing China whose trade with Iran topped $22 billion in the last Iranian year (March 2015-16).

Following the lifting of sanctions in January, as part of last year’s nuclear deal between Tehran and world powers, German companies have struck a series of deals with Iran in a wide range of sectors, including oil and gas, infrastructure, renewable energies and water management.

According to the Islamic Republic of Iran Customs Administration, trade between Iran and Germany stood at $2.13 billion in the the last Iranian year, down 25% over the previous year.

IRICA's latest stats show bilateral trade is already witnessing a rebound. Iran exported 10,400 tons of non-oil goods, worth $87 million to Germany during the first four months of the current Iranian year (started March 20), registering a %1.4 increase compared with last year's  corresponding period. Pistachios, carpet, caviar, saffron and dates were among the main exports.

More than 419,000 tons of goods valued at $671.3 million were imported from the European country during the same period, indicating an 18% rise year-on-year. Imports mainly included industrial machinery, grain, pharmaceuticals and steel products.

[screwball]

 

News ID: 1199625 Service: Economy 

 September, 29, 2016 - 13:23 

TEHRAN (Tasnim) – The CEO of PSA Peugeot Citroen said the French carmaker plans to sell over 150,000 Peugeot vehicles in Iran in the second half of this year, a report said. 

Carlos Tavares told reporters at the Paris autoshow on Thursday that Peugeot will sell over 150,000 vehicles in 2016 as well as over 300,000 in 2017, Reuters reported.

Back in July, Iran’s major car manufacturer Iran Khodro (IKCO) and the giant French automotive Peugeot Citroen officially launched a joint venture to turn Iran into a regional hub for the production of Peugeot vehicles and components.

There has been growing interest in ties with Iran since Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 reached an agreement on Iran’s peaceful nuclear program and started implementing it on January 16.

The agreement terminated all nuclear-related sanctions imposed on Iran.

[Freedomwish]

17 hours ago, screwball said:

 

Iran and Australia have signed fresh agreements to forge closer ties, with Australian Trade Minister Steve Ciobo announcing the dawn of a new age of relationship. 

Australian Trade Minister Steve Ciobo arrives at Iran-Australia trade forum held in Tehran, Sept. 28, 2016. (Photo by IRNA) 

Australia!!  Congrats brother Screwball!!! 

8 hours ago, screwball said:

I wonder if my rials are worth over 100,000,000 will that make me a corporate client if it means business...

If all signs continues to lead in unifying the currency into a single forex rate, you can open up your own bank!!  

Wow, could you only imagine if it'll lead into this for everyone?!!   

5 hours ago, screwball said:

 

“However, until CBI is not sure that everything is ready, it will naturally not go forward with the plan,” he said in response to concerns that while some sanctions still persist, rate unification will be meaningless and may serve only to increase forex rates.

Assuring that CBI is in complete control of the situation, Seif reiterated his past pledge that CBI plans to unify the rates by March 2017.

“Since we have the means to execute the plan on schedule, there is no need to worry and businesses can rest assured that economic stability has always been among our most serious goals,” he said.

 

ready?yes I am! No your not! Yes I am! Lol...

We're ready!!  We're Readyyyyyyyy!!!

[jaman]

1 hour ago, Freedomwish said:

Australia!!  Congrats brother Screwball!!! 

If all signs continues to lead in unifying the currency into a single forex rate, you can open up your own bank!!  

Wow, could you only imagine if it'll lead into this for everyone?!!   

We're ready!!  We're Readyyyyyyyy!!!

 

have you opened a business yet..LLC you can transfer your money to them and NOT have your own taxes go up...you could be the director of Board and take a syphon from it 

[WheresmyRV?]

11 hours ago, screwball said:

 

“However, until CBI is not sure that everything is ready, it will naturally not go forward with the plan,” he said in response to concerns that while some sanctions still persist, rate unification will be meaningless and may serve only to increase forex rates.

Assuring that CBI is in complete control of the situation, Seif reiterated his past pledge that CBI plans to unify the rates by March 2017.

“Since we have the means to execute the plan on schedule, there is no need to worry and businesses can rest assured that economic stability has always been among our most serious goals,” he said.

 

ready?yes I am! No your not! Yes I am! Lol...

March it is then, at least we know this is coming unlike Iraq.

[screwball]

1 hour ago, WheresmyRV? said:

March it is then, at least we know this is coming unlike Iraq.

October I am hoping! By March at the latest!

[screwball]

Remember they have given us two dates october and before March with March 21st 2017 being end date!

[Freedomwish]

11 hours ago, jaman said:

have you opened a business yet..LLC you can transfer your money to them and NOT have your own taxes go up...you could be the director of Board and take a syphon from it 

Oh trust me, I've done my homework and am way well already prepared here.  Yup. 

[screwball]

Quote

 

“It is our expectation that the rates will be set based on market conditions. Things were different in the past but now that the economy is operating in a calm atmosphere, current interest rates are acceptable even though there is a discrepancy between them and the inflation rate,” he said.

[screwball]

http://en.farsnews.com/newstext.aspx?nn=13931206000357

[screwball]

Banks Allowed Trade in Open Forex Market

The Central Bank of Iran said Thursday commercial banks will soon be allowed to trade in the parallel foreign exchange market, as part of the initiative to scrap the dual exchange rates and move toward a floating currency regime.
CBI governor, Valiollah Seif, who has announced plans to unify exchange rates before the fiscal year ends in March, said banks will be allowed to buy foreign currency from their clients and trade with it at the market rate.
“Moreover, exporters will also be allowed to sell their forex revenues to banks or deposit them in their bank accounts,” he said, the CBI website reported.
Speaking in the holy city of Mashhad in Khorasan Razavi Province, Seif reiterated his pledge that exchange rates would be unified before the year is out in March 2017.
Based on a recent directive from tax authorities, profits made from the difference between transactions at the official forex rate and the market rate for exporters will be exempt from tax.
Iran was forced to revert to the controversial double exchange rate regime after nuclear-related sanctions unleashed turmoil in the forex market in 2011-12 in which the national currency lost almost 70% of its value within days.
Unification of forex rates is considered a crucial requirement for the reintegration of Iran into the global banking system and payment networks. The private sector has also been calling for unification of forex rates mainly to eliminate rent-seeking and corruption.

 

Fostering Economy
On the oft-mentioned issue of expanding credit to struggling industries, Seif called on provincial officials to do their best in identifying the businesses ion need, so that the banks “limited resources would not be squandered.”
The Ministry of Industries, Mining and Trade, and special taskforces in provinces have been tasked by the government to list needy businesses in need of credit from the banking sector, in an attempt to help pull the economy out of the long and painful recession.
“Banks will not ignore their core banking business. Loans will be allocated only to enterprises that are able to repay.” Almost all banks are saddled with billions of dollars in troubled credit while companies are buried under high interest rates and low profitability.
Hasty plans for financing businesses and forcing banks to lend without sufficient collateral during the previous administration resulted in the huge non-performing loans It is said that, NPLs now account for 45% of lenders’ total assets.
Seif also referred to the government’s plan for implementing reforms in the banking sector and overhaul the inefficient and lethargic financial sector.”
“Once [the overhaul plan] is implemented, capital markets will restart financing businesses and banks will no longer shoulder the financing task alone,” he added.
Officials have unveiled plans for the capital market to finance long-term projects and thereby take the pressure off the banking sector–which now finances over 90% of the economy.
The government has long been trying to dispel misconceptions about the banking system, according to Seif, in order to “put the financial and monetary system on the right track.”

 

Source: http://financialtribune.com/articles/economy-business-and-markets/46541/banks-allowed-trade-open-forex-market

 Read More...

[screwball]

http://showcase-iran.com/news-feed/banks-allowed-trade-in-open-forex-market/

[screwball]

Reuters: "Iran's efforts to unify its official exchange rate with the market rate have been stymied by a lack of progress in re-integrating the country in international capital markets, central bank governor Valiollah Seif said on Thursday. Iran has a formal exchange rate set by the central bank and an unofficial market rate used more freely. Policymakers have said previously that they planned to unify the two, with the process originally due to start about six months after the country implemented a deal with major world powers in January aimed at limiting its nuclear activities in return for having sanctions lifted. 'It was our expectation...to be able to connect to the international markets and utilise all the resources available during a reasonable period of time. But unfortunately it did not happen as yet as we expected,' Seif told Reuters in an interview on the sidelines of the Euromoney Iran conference." http://t.uani.com/1TupwtM - See more at: https://www.unitedagainstnucleariran.com/news/eye-on-iran-us-eu-urge-european-banks-businesses-to-invest-iran#sthash.C2d9peTP.dpuf

 

sounds like as we know China, South korea and euro payment system is the key having a non usd settlement system. Well step one is China in the basket,mand that's this weekend my peeps!

[screwball]

U.S. Signed Secret Document to Lift U.N. Sanctions on Iranian Banks 

Administration backed measures on the same day Tehran released four American citizens from prison 

By 

JAY SOLOMON and 

 

CAROL E. LEE

Sept. 29, 2016 8:02 p.m. ET

WASHINGTON—The Obama administration agreed to back the lifting of United Nations sanctions on two Iranian state banks blacklisted for financing Iran’s ballistic-missile program on the same day in January that Tehran released four American citizens from prison, according to U.S. officials and congressional staff briefed on the deliberations.

[screwball]

Sorry I can't give you the whole article but thought this was enough!

[screwball]

A currency exchange bureau worker counts the US dollars, at the Ferdosi St in central Tehran (file). The rial lost about 80% of its value in the year to late 2012 as a result of sanctions. Since President Hassan Rouhani took office in August 2013, the central bank has tightened credit and stabilised the currency. 

Bloomberg
Frankfurt

Iran plans to unify the rial’s exchange rates with the dollar after the nuclear accord signed with world powers is implemented, according to the country’s central bank governor Valiollah Seif.
“We have a very stable currency market, but to proceed toward a unified exchange rate requires accelerating the country’s access to foreign currency,” Seif said in an interview in Frankfurt on Wednesday. “It can happen once the nuclear deal is implemented, maximum six months after that.”
The agreed lifting or suspension of sanctions on Iran is expected to begin in the first quarter of next year following verification that the Islamic Republic has met its commitments on dismantling its nuclear programme. The unfreezing of assets worth at least $30bn and access to international finance and foreign direct investment may follow.
Under the terms of the deal, most of Iran’s banks will be reconnected to Swift, the global financial messaging system that facilitates bank transfers.
Iran has both an official exchange rate to the dollar and another rate that is used in unregulated markets. The rial traded at 35,750 per dollar on the street on Wednesday, compared to the official rate of 29,970 cited on the central bank’s website.
The rial lost about 80% of its value in the year to late 2012 as a result of sanctions. Since President Hassan Rouhani took office in August 2013, the central bank has tightened credit and stabilised the currency.
The central bank’s role is to “smoothen fluctuations of exchange rates,” Seif said. But “if we allow the rate to be defined by the economic realities and decided by the market the bank’s only role will be to prevent shocks,” he said.
Iran’s economy will expand less than 3% this year, with growth rising to 5% in the Iranian year starting March 2016 boosted by oil sales, industrial output and tourism, he said. Inflation will fall to “single-digits” next year, from 13%, he said.
Rouhani has said Iran needs $150bn in investment to achieve the 8% economic expansion that can lower the country’s chronic youth unemployment.
Iran has “€100bn worth of projects, which investors can review and choose from either by partnering, or financing them, or through direct investment,” Seif said.

 

thisis old but I never posted just another article in the line of many

[screwball]

"Iranian economy has developed itself in current conditions and many trade barriers in our countries have been removed. At present, Iran holds banking relations with many Asian countries including Japan, India, South Korea, Malaysia and Indonesia and we hope that this relationship will further extend to other Asian countries, including Pakistan." said Komijani while mentioning the Iranian economic growth in the first quarter of the Iranian year.
Emphasizing the stable economic conditions in Iran, Komijani pointed out that the inflation rate was around 45 percent at the beginning of Rouhani administration. Implementation of appropriate policies by CBI caused this rate to decline to approximately 9.2%. Moreover, the volatile exchange rate in the early days of this government is stabilized now.
"Fortunately, Iranian currency (i.e. Rial) has regained its value against foreign currencies and currently it has a relatively stable exchange rate against dollar. We have reached the relative stability. In this regard, the Central Bank of Iran is seeking to unify the exchange rate. The ongoing process of exchange rate unification would further reduce this rate and strengthen the Rial." he added.
Pointing to the signing of an MOU between the two countries on existing capacities to expand trade relations, the deputy-governor of the Central Bank stated: "Since the implementation of JCPOA, Iran has moved towards expanding trade relations with other countries. Therefore, establishment of the Joint Expert Committee between the two countries could help remove obstacles and facilitate banking and business relations”. “Other organizations and institutions including the Chamber of Commerce of Iran also play a major role in the field of trade and economy.” he continued.
At this meeting, the CBI vice-governor for foreign exchange affairs insisted on the establishment of correspondent relations to improve trade and economic ties between the two countries."CBI does its best to increase correspondent relations with other countries and it is also opening accounts in countries such as Germany, Austria and Italy”, he said, “According to the latest statistics, the number of accounts with international banks has reached 542."
 Referring to of four agreements signed between the two countries, Mr. Kamiab said; “Ashraf Vatra, the Governor of the Central Bank of Pakistan, stressed on cooperation between the two nations in his previous visit and expressed his willingness for such cooperation. Iran also welcomed the idea of further cooperation and establishment of joint committees as useful instruments to operationalize the mutual agreements”.
Meanwhile, Mr Munir, the head of Trade Development Authority Of Pakistan, expressed his satisfaction from visiting Iran and his enthusiasm to increase the volume of transactions. He asserted that boosting the trade volume between the two countries would develop banking relations. “Iran has a great potential to expand cooperation and we hope to establish correspondent relations and open bank accounts so as to facilitate trade relations with Iran", he mentioned.
This high-ranking member of Pakistani delegation released the news about MCB Bank of Pakistan’s request to open a branch in Iran and said, “The banking and correspondent relations between Iran and Pakistan is far from satisfactory at the moment and we do hope that the opening of branches in Iran will lead to comprehensive economic cooperation.

[screwball]

"Fortunately, Iranian currency (i.e. Rial) has regained its value against foreign currencies and currently it has a relatively stable exchange rate against dollar. We have reached the relative stability. In this regard, the Central Bank of Iran is seeking to unify the exchange rate. The ongoing process of exchange rate unification would further reduce this rate and strengthen the Rial."

[screwball]

The Central Bank of Iran (CBI) issued new instructions regarding exchange of hard cur­rency, once again allowing banks to buy and sell foreign currencies at the free market rates. With the implementation of financial sanctions in 2011, two exchange rates had de­veloped in Iran, an official rate and a free market rate. Up until now, banks only recog­nized the official rate which was set by the CBI on the morning of every working day. On the other hand, regulated exchange houses were trading foreign currencies at the free market rate. With the implementation of the Joint Comprehensive Plan of Action between Iran and EU3+3 as of January 2016, all nuclear related sanctions were lifted. As a result, officials at the Central Bank have been aiming to normalize financial transactions and have stated their willingness to unify the exchange rates. The existence of multiple ex­change rates has been regarded as one of the main impediments for financial transactions with international banks. According to CBI officials, the unification of the exchange rates is expected to take place sometime between September 2016 and March 2017. The recent move which allows banks to exchange hard currency at the free market rate can be re­garded as a step in that direction. Reviewing the Iranian Rial’s performance in the FX mar­ket shows the free market rate of USDIRR has increased by 6.8% on a yearly basis, while the official rate of the pair has had less growth, adding 4.7% in the same period.

[screwball]

Interesting article but their rate at the bottom of the Page is interesting, not sure if this has happened.

Cuba prepares for exchange-rate reform

Although reforms to Cuba's dual currency system have been anticipated for some time, a special issue of the Gaceta Oficial (Official Gazette) published on March 6th suggests they will soon be going ahead. It provides instructions for Cuban enterprises on what to do when the "convertible peso" (CUC) is abolished. However, it stops short of giving an exact date for the change, or specifying the rate of exchange that will apply.

The new instructions for the day when the CUC is abolished—a moment referred to in the Gaceta Oficial as "día cero" (day zero)—represents an important step towards currency unification. It follows an official note published on October 22nd 2013 confirming that the authorities have prepared a timetable for the change, but still provides no details on the date of the change, or the rate of exchange that will be used in the new system.

CUC set to be abolished

The first part of the document (Resolution no 19/2014) provides the first official confirmation that unification will be achieved by removing the CUC from circulation. The CUC was introduced in 2004 and replaced widespread use of the US dollar; the convertible peso is used by tourists and also for external transactions (purchasing imports), as well as in "hard-currency" retail outlets, which sell imported goods. At present, the CUC is convertible for foreign currency at Cuban banks, but cannot be exchanged outside the country. Its foreign exchange value is fixed at par with the US dollar (CUC1:US$1), although the exchange is usually with other currencies: due to US restrictions on Cuban use of US currency, banks do not sell the US dollars, and when they buy them they impose an additional 10% charge. 

Currently, the Cuban peso (CUP) is used in the domestic economy, with prices and wages denominated in this currency. The Cuban peso can only be converted to hard currency through a two-stage process (CUP to CUC to Euros/Canadian dollars etc), a 3-stage process in the black market or abroad to get US dollars. However, by abolishing the CUC, the reform will make it possible to convert the peso into foreign currency in a single transaction, although details of any planned exchange controls are not yet known. 

Government hopes to reduce distortions

Exchange-rate reform will also mean a sudden adjustment in the official price index, which tracks CUP prices, as goods and services that are currently only sold in CUCs would be converted at the undervalued CUP rate. The index would then reflect the Cuban peso's loss of purchasing power of the early 1990s. 

The unification of currencies is necessary to removing the huge distortions that currently exist within the domestic economy as a result of the existence of two different exchange rates between the CUC and the CUP. The official rate, used for accounting purposes by state entities, overvalues the CUP at one CUP per CUC (CUP1:CUC1); and the rate used for personal transactions and by the growing private sector (known as the "Cadeca" rate) undervalues the CUP, at CUP24:CUC1. The domestic and external economies are therefore segregated. While the non-state tourism sector thrives, Cuban enterprises struggle to break even, as monetary duality severs the linkages required to diversify exports, substitute for imports or send price signals to boost productivity. 

Complex instructions

The instructions are detailed and complicated. It seems that the official hope is that, by issuing them in advance of the change, enterprises and other state organisations will have sufficient time to train staff and prepare for the moment, and the authorities can avoid, or at least minimise, the potential for speculative gains or losses for savers.

In preparation for día cero, the resolution 19/2014 provides full details on how managers will need to settle accounts, using the current exchange rate up to that date. Resolutions 20/2014 and 21/2014 set out the system for setting wholesale and retail prices respectively. The impact of CUC abolition will depend upon how prices adjust, and the aim of these instructions seems to be to control the process through administrative means, to minimise price instability.

The instructions for setting wholesale prices, which will all be in CUP, require enterprises to take into account costs of production for imported inputs, as well as the existing price in the international or domestic market. Formulae for calculation are provided, and approval has to be sought from the authorities. If costs are higher than the existing price and state subsidies will be needed to cover losses, these have to be agreed in each case. The rules for setting retail prices are similarly intricate, but here, too, they attempt to find a balance between allowing enterprises to respond to market signals and restraining inflation by imposing a requirement to obtain official approval. 

Despite any efforts to manage the adjustment, some disruption and confusion is inevitable, and there will be winners and some losers. The political management of día cero will be a challenge. One consideration is timing. A bank holiday is likely, in order to provide an opportunity for managers to complete their accounts and adjust prices in line with the formulae stipulated. The summer months would be difficult, because the school holiday means that children have to be fed an extra meal at home, putting extra pressure on family budgets, so if día cero is not introduced before mid-July, it seems likely to be postponed until September. 

Exchange rate is the biggest unknown

The most important decision will be the exchange rate. A rate of CUP24:US$1, the current Cadeca rate, might seem to be least disruptive, but it would create difficulties. By extending the undervaluation of the CUP to the enterprise sector it would radically improve competitiveness, but confirm the income gap between CUP wage-earners, who mainly live close to subsistence, and the privileged section of the population with CUC incomes. An adjustment to CUP20:US$1, CUP15:US$1 or even CUP10:US$1, would provide a partial correction in relative real incomes while also improving competitiveness and allowing room for a further revaluation once things have settled and confidence has been established. 

There are political and economic risks associated with the process of exchange rate adjustment, but if the initial disruption is weathered, it will favour faster economic growth. The publication of these documents increases the probability of currency reform before the end of 2014, in line with our forecast. However, with the date and exchange rate for the unification still unknown, a high degree of uncertainty remains.

 

[screwball]

Interesting! Unification?ncurrency reform? Two rates? Sanctions? See any similarities? Does Cuba have oil?

[screwball]

http://www.havanatimes.org/?p=108639

[screwball]

Cuba Issues New Bills in Preparation for Monetary Unification

January 15, 2015 |  Print | 11  403  54 814

By Café Fuerte

The new 1000 peso note.

HAVANA TIMES — This Cuban government announced Wednesday that it would issue 200, 500 and 1,000-peso (CUP) notes and that these would be put into circulation on February 1 this year in preparation for the country’s imminent monetary unification process.

The Central Bank of Cuba (BCC) issued a communiqué explaining the decision by referring to the wider use of the CUP at what were hard-currency only (CUC) stores over the past few months, something which has increased the demand for larger denominations of the currency.

The current exchange rate for Cuban pesos (CUP) is just over 20 to the US dollar and 25 to the Cuban Convertible Peso or CUC.

“The Central Bank of Cuba has decided to gradually issue new Cuban peso (CUP) notes with a view to facilitating these transactions,” states the official communiqué, published this Wednesday by Granma and other State newspapers.

The measure implemented by the BCC is backed by Resolution No. 4 of January 15, 2015, published this Thursday in a special issue of the Official Gazette.

Frank Pais, Agramonte and Mella

The new bills will bear the likeness of Cuban revolutionary martyr Frank Pais (200 CUP), the independence hero Ignacio Agramonte (500 CUP) and the communist student leader Julio Antonio Mella (1,000 CUP). All will have a watermark with an image of revolutionary Celia Sanchez Manduley.

The new notes will also be fitted with a holographic strip bearing the value of the bill and the acronym “BCC”, as well as color bands throughout the surface, designed as an anti-counterfeiting measure.

The new 1,000 CUP note will bear the image of student activist Julio Antonio Mella

As of February 1, the new bills will be gradually put into circulation through Cuba’s Metropolitan Bank, the Banco Popular de Ahorro (“Popular Savings Bank”), the Banco de Credito y Comercio (“Credit and Trade Bank”) and currency exchange locales.

The BCC plans on following a work schedule to distribute the bills and will prepare the conditions for the new monetary system using personnel who deal directly with the public at stores and banking institutions.

The characteristics of the new bills will be outlined in signs that will be posted at all banking institutions and retail stores. Bills currently in circulation will be used in conjunction with the new notes and retain their validity.

This is the most important step taken by the Cuban government towards the country’s monetary unification, announced last year.

Cuban Convertible Peso Still in Circulation

For the time being, the CUC (Cuban Convertible Pesos) will continue to circulate, with a value of 25 CUP at the current exchange rate.

News of the measure was accompanied by an interview with Mayobre Lence and Ariel Torres Collazo, BCC Vice-Chair and Issuing and Value Director, respectively, and Barbara Soto Sanchez, commercial manager of the Cuban corporation CIMEX, who touched on the details and scope of the decision.

These officials explained that, over the past few months, the use of the CUP at hard-currency stores has become more widespread. There, the prices are determined on the basis of the exchange rate operative at exchange locales. This situation means that greater quantities of money are handled by individuals and stores on a daily basis.

“The circulation of large-denomation notes will help reduce this problem little by little. To make large payments, people will be able to use these notes,” Mayobre Lence said.

Large Volumes of Money

One of the main difficulties faced today owing to the circulation of the two currencies is that most sales at State stores are paid for using 20 and 50-peso notes. As such, for the purchase of household appliances and furniture (which represent 17 % of incomes at stores run by the CIMEX corporation), customers must carry large quantities of money under conditions that aren’t always optimal.

“In addition, store clerks have to work more to register these large sums of money and, as transactions slow down, the stores’ income decreases, with customers who leave without making a purchase, unwilling to wait in the long lines,” the CIMEX representative explained.

In addition, there have been problems with the registers, too small for such large quantities of money, as only large shopping centers have strong boxes capable of holding large volumes of cash.

With this measure, experts predict a reduced waiting time, less daily withdrawals from safes and general improvement in services.

Government authorities informed the population that the bills will not be available at all bank branches at first, as the distribution of the new notes will be gradual. Havana, the provincial capitals and some municipalities around the country will be prioritized, in dependence on the volume of transactions there.

 11  403  54 814whatsapp0