CUBA is today optimizing its financial machinery given what will be an increase in external flows from the island in 2005, a product of the positive economic prospects announced by President Fidel Castro in the Cuban Parliament.

During an ordinary session of the National Assembly of People’s Power (single-chamber Parliament), the Cuban leader spoke of important agreements signed with China and Venezuela.

Those are complemented by increased investments in the nickel sector and the discovery of a new oilfield on the island with reserves of approximately 14 million tons.

In the face of those events, the Central Bank of Cuba (BCC) has drawn up a new resolution with a view to optimizing the functioning of the country’s economic activities.

According to resolution No 92/2004, starting in 2005 all the hard-currency income received into the Central Bank via contributions, taxes and retail outlets will be deposited in the BCC in an account known as “Sole account for state hard-currency income.”

In their turn, all entities that receive convertible pesos (on a par with the dollar) via this route must always purchase them with Cuban pesos.

In parallel, income proceeding from joint enterprises or other joint businesses in respect of dividends from the Cuban party will be deposited in this account.

Likewise, from January 1,2005, the Hard-Currency Approval Committee, presided over by the emitting body, will authorize operations in convertible pesos as well as transactions in hard currency.

In this new phase, the resolution states, the above-mentioned committee will be reinforced by specialists from various ministries to analyze and operate in an expedite form in order to avoid obstacles and delays that might affect enterprise efficiency.

The document affirms that the practice whereby the enterprises of an agency contribute convertible currency to that agency for internal redistribution is to be abolished in the first quarter of 2005.

Those contributions will similarly be concentrated in the sole hard-currency account in the BCC.

The convertible peso requirements of enterprises producing for the ration system or for sales in national currency will be centrally assigned, always via their purchase with Cuban pesos.

Thus Cuban banks will no longer process transactions in convertible pesos or hard currency from Cuban agencies that are not authorized by the Hard-Currency Approval Committee.

The objective of these measures, concludes the resolution, is a more efficient use of the countries hard-currency resources and to give a greater guarantee to the Cuban entities’ external commitments. (PL)

(Granma) Havana. December 30, 2004