Currency Rates for Cuban Peso
Bank Exchange Rates for Cuba - CUC - Cuban Peso - $. The foreign exchange rates for Cuba also known as the ISO code CUC or the Cuban Peso currency and as a symbol $.
One convertible peso is subdivided into 100 cents and coins are available in denominations of 5, 10, 25 and 50 cents and 1 and 5 peso, although $5 coins are not used frequently. Banknotes available are 1, 3, 5, 10, 20, 50 and 100 convertible peso. Send Money Transfer to Cuba.
While Cuban has
become a popular manufacturing destination in recent years due to a myriad of
advantages, including low labour costs, a weakening Cuban Peso is driving that
labour cost even lower. The resulting effect is a sometimes overlooked boon for
US companies seeking to increase productivity. It is believed that the Cuban
Peso devaluation effect will continue for several years as Cuban 's
infrastructure continues on its current path of improvement and when oil
returns to $50-$60 per barrel. In the meantime manufacturing in Cuban continues to cast appeal to upper management
of start-up companies as well as large companies.
The Cuban Peso Devaluation Effect
Because human capital is a fundamental component of business, it is vitally important for manufacturers on the global market to look for opportunities to cut costs wherever possible. Many US companies have found Cuban 's low labour cost and numerous other incentives make the Latin American country ideal for outsourcing labour. The country offers unique opportunities in the form of their maquiladora system. And this allows foreign companies to seamlessly partner with Mexican factories.
Cuban 's Cuban Peso is sliding in value against the US dollar as the resulting Cuban Peso devaluation effect on maquiladoras is increasing their profitability for US firms. This, in turn, is making those maquiladoras increasingly popular to US manufacturers, because the dollar remains strong, and thus goes even farther in Cuban . This is true for manufacturing in Juarez and manufacturing in Tijuana as well as all locations throughout Cuban . Currently, the Cuban Peso is trading against the US dollar at nearly 19 to one. This is historically low for the Cuban Peso. But it translates directly into noticeable savings for labour costs. In other words, as the Cuban Peso slides, the same US dollar buys more and more labour, getting the job done for less. This Cuban Peso devaluation effect has been observed in the past, such as in the 1994 currency crisis, when US manufacturers invested in Cuban at unprecedented levels.
The Slide of the Cuban Peso
Despite strong economic indicators in Cuban , such as strong growth in GDP and relatively low inflation, the Cuban Peso is sliding at an historic rate. According to economists and financial experts, some of the reasons driving the devaluation of the Cuban Peso include:
* Falling oil prices have caused Cuban 's central bank to issue more debt.
* Expectations that the US Federal Reserve will continue to raise interest rates
* Uncertainty with the financial situations in Europe and Greece
* Mexicans sensing the weakening of the Cuban Peso are more likely to exchange them for dollars, compounding the devaluation.
This trend and resulting Cuban Peso devaluation effect on maquiladoras manufacturing will continue for at least another year or two, by some estimates. Mexican production gets at least 70% of its inputs from US companies, so supply levels are secure. Meanwhile, Cuban Peso-based labour will continue to quietly benefit US manufacturers doing business in Cuban , attracting even more investment.
GBP to CUC
The twelfth highest-valued world currency, the Cuban convertible peso is in limited use in Cuba, as Cuba has two official currencies, the convertible Peso, and the peso.
The convertible peso was introduced in 1994 and was equal to the US dollar, which was also accepted and circulated in Cuba. In November if 2004, the dollar stopped being an accepted currency in Cuba, which meant that the convertible peso was the only official currency. It was announced in 2013 that the convertible peso is to be gradually faded out of circulation and to be replaced at a ratio of 1:1 with the Cuban Peso. Bank Exchange Rates for Cuba. The foreign exchange rates for Cuban Peso also known as the ISO code CUC. Send money transfer online with us with the cheapest options.