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HAVANA, Cuba — The Central Bank of Cuba has announced an 8 percent devaluation of the island’s hard currency, the Cuban Convertible Peso or CUC.

HAVANA, Cuba — The Central Bank of Cuba has announced an 8 percent devaluation of the island’s hard currency, the Cuban Convertible Peso or CUC. If prices remain steady, the move will increase the buying power of tourists visiting Cuba as well as that of Cubans receiving remittances from abroad.

With the economic crunch now facing the Caribbean country the decision made public Monday should also boost Cuba’s exports and give incentive for local production over imports, noted Central Bank President Ernesto Medina Villaveirán.

The devaluation puts the CUC at 1 X 1 with the US Dollar (it had been $1.08 CUC x 1.00 USD) and also gives more buying power to the Euro and all other currencies.

In the case of the US Dollar only, the 10 percent surcharge for exchanging cash money is still in effect. It does not apply to credit card or wire transfers.