Dollar ceases to be legal currency in Cuba
Pakistan Times Business & Commerce Desk

HAVANA (Cuba): The dollar on Monday ceased to be legal tender in Cuba under an order made by communist leader Fidel Castro that he said was to counter US attempts to stifle the island's economy.

From Monday dollar transactions in stores, hotels, restaurants and other businesses, that have been allowed for the past 11 years, were replaced by the government's "convertible peso".

Cubans have been queuing at special exchange counters to swap dollars for the convertible currency which will be worth one dollar in Cuba but have no value on world markets.

Until Castro made his decree last month, Cubans had hoarded dollars to be able to buy products -- including some essentials --in dollar stores.

Castro's move came as a new jolt to the population which has seen the economy steadily deteriorate in recent years because of the US embargo and the loss of European communist allies.

The authorities originally gave the population two weeks to change dollars for convertible pesos, but this deadline has now been extended until November 14. After that date a 10 percent surcharge will be added to currency swaps.●