WHEREAS: In the last few months the U.S. government has intensified its economic war on the people of Cuba by dictating new measures aimed at systematically hindering the external financial flows of our country, thus causing serious damage and creating grave risks for the exercise of our normal international financial activity.

WHEREAS: As part of this policy, the U.S. government has increased its pressure on and threats to foreign banks to prevent Cuba from depositing the U.S. dollars spent by the population and foreign visitors in Cuban establishments that sell merchandise or lend services in that currency abroad in order to meet its commercial obligations.

WHEREAS: Recently, the assistant deputy secretary for Western Hemisphere Affairs attached to the Department of State announced the creation of a “Pursuance of Cuban Assets Group” composed of officials from various government agencies to interfere with and halt the flow of hard currency to and from Cuba, which constitutes a new aggression unprecedented in the history of international financial relations.

WHEREAS: The situation thus created demands the urgent adoption of measures to protect the country’s interests faced with the serious damage that such actions will cause it.

WHEREAS: In its Article 36 (Clause a]) Decree Law No. 172 “From the Central Bank of Cuba, “ dated May 28, 1997 establishes that the faculties of the president of the Central Bank of Cuba include that of drawing up resolutions, instructions and other dispositions necessary for the execution of the functions of the Central Bank of Cuba, with an obligatory nature for all agencies, bodies, enterprises and state economic or other associations, cooperatives, the private sector and the population.

WHEREAS: The person with that faculty was designated government minister and president of the Central Bank of Cuba by the Council of State Agreement dated June 13, 1997.

THEREFORE: In the execution of the faculties conferred upon me, and in prior consultation with the president of the Councils of State and Ministers;

I RESOLVE:

I “On the holding by the population of U.S. dollars and other freely convertible currencies that circulate in the country”

Article 1: The population may maintain in its power any quantity of U.S. dollars or any other freely convertible currencies without restrictions of any kind, as is the case to date.

II “On cash payments in freely convertible currency, starting November 8, 2004”

Article 2: From November 8, 2004 all entities that currently accept U.S. dollars in cash on charging for their transactions in national territory, will only accept convertible pesos.

This measure is to be universal, both for the population and for visitors from abroad. Its application covers: stores, hotels, restaurants, bars, cafeterias, taxis, car hire agencies, and any other entity currently charging in U.S. dollars in cash.

As has been previously stated, the application of this measure does not imply any kind of limitation on holding U.S. dollars or any other freely convertible currency.

Article 3: The convertible peso will maintain its conversion on the basis of one convertible peso to one U.S. dollar.

Article 4: From November 8, 2004 persons wishing to acquire convertible pesos with U.S. dollars in cash will have to pay a 10% surcharge as compensation for the costs and risks to the national economy originating with the handling of U.S. dollars as a consequence of the above-mentioned U.S. government measures.

The remainder of hard currencies exchangeable in Cuba: the euro, Canadian dollar, GBP sterling and Swiss francs can be exchanged for Cuban convertible pesos without any tax whatsoever, taking international market exchange rates as a reference point and always considering one convertible peso as equal to one U.S. dollar.

In time, bank branches and Exchange Bureaus will be able to change other hard currency as part of their services.

From November 8, 2004, there will also be a 10% surcharge on U.S. dollars in cash used to buy Cuban pesos in the Exchange Bureaus. Cuban pesos can be purchased with euros, Canadian dollars, GBP sterling and Swiss francs as is the case to date, without any 10% surcharge.

Article 5: Euros will still be accepted in the tourism complexes that currently do so.

III- “On the use and operation of bank accounts and credit cards in freely convertible currency by Cuban or foreign persons”

Article 6: Current U.S. dollar accounts held by the population in Cuban banks are totally guaranteed. Withdrawals in U.S. dollars or convertible pesos from such accounts can be made at any point, with no time limit and without any kind of restriction, according to the client’s choice, at the present rate of 1 to 1, and the 10% surcharge will not be applied. From November 8, 2004, cash deposits in U.S. dollars in such accounts will not be accepted. Those accounts can receive funds via bank transfers in any freely convertible currency, as well as receiving cash deposits in convertible pesos, Canadian dollars, GBP sterling, and Swiss francs, taking the international market exchange rates as a reference.

The same dispositions laid out in the last paragraph will be applied to current U.S. dollar accounts held by foreigners in Cuban banks.

Article 7: From November 8, 2004, persons wishing to open new accounts in U.S. dollars or constitute deposit accounts in that currency will be able to do so, but deposits and withdrawals can only be made in U.S. dollars cash in these new accounts.

Article 8: Accounts in convertible pesos will continue to enjoy all the bank guarantees and services presently available. From November 8, 2004 these accounts will not accept U.S. dollar cash deposits.

Article 9: Current deposit accounts and savings certificates in U.S. dollars and convertible pesos are totally guaranteed, they are not subject to the 10% surcharge and will maintain the conditions agreed by the holder at the moment of their constitution. The principal and interest accrued in deposit accounts or savings certificates in U.S. dollars in force on November 7 can be collected in U.S. dollars or convertible pesos when they are due, according to the client’s choice, at the rate of 1 to 1 without the application of the 10% surcharge, or converted into convertible pesos deposit accounts at the rate of 1 to 1 without the 10% surcharge being applied. These deposits can be renewed as many times as the client wishes without losing these prerogatives.

Article 10: Operations made with credit or debit cards accepted in Cuba, whether for the realization of payments or cash withdrawals can continue as is the case to date without any 10% surcharge.

IV- “On the use of cash and the operation of bank accounts in convertible pesos by private individuals”

Article 11: From November 8, 2004, U.S. dollars in cash will not be accepted into the current accounts maintained by trading associations based on joint or foreign capital, and foreign representations in Cuba, including diplomatic ones. At the request of the account holder, withdrawals can be made in U.S. dollars cash or in convertible pesos without applying the 10% surcharge. Exceptionally, the Central Bank of Cuba will be able to authorize cash deposits in U.S. dollars without applying the 10% surcharge into the accounts of certain of the aforementioned holders, but in that case the 10% surcharge will be applied.

Article 12: In terms of accounts in convertible pesos held by state enterprises, trading societies with 100% Cuban capital, budgetary units and other authorized agencies, cash may continue to be withdrawn in line with the existing regulations. From November 8, 2004, these accounts will not accept cash deposits in U.S. dollars. Exceptionally, the Central Bank of Cuba can authorize cash deposits in U.S. dollars for certain of the above-mentioned account holders, but in such cases the 10% surcharge will be imposed.

V- “Locations authorized for the exchange of currency”

Article 13: From October 28, 2004, the acquisition of convertible pesos with U.S. dollars can be undertaken in any of the following locations:

• Exchange Bureaus, They can likewise change euros, Canadian dollars, Swiss francs and GBP sterling, taking as their reference point international market exchange rates.

• Bank branches. They will change only amounts of 10 U.S. dollars or over, except in municipalities where there are no Exchange Bureaus. They can also change euros, Canadian dollars, Swiss francs and GBP sterling, taking as reference the rates of exchange on the international market.

• Selected hard-currency stores and other authorized establishments. Only convertible pesos can be acquired in these places in exchange for U.S. dollars, in amounts of 10 U.S. dollars or more.

• Hotels. They will also exchange euros, Canadian dollars, Swiss francs and pounds sterling, taking the rate on the international market as their reference. They will offer exchange services only to their clients.

From October 28 to November 7, 2004, convertible pesos can be acquired with U.S. dollars without the application of the 10% surcharge. From November 8, 2004 the aforementioned surcharge will be applied.

Article 14: Transactions for acquiring U.S. dollars with convertible pesos can be made in the Exchange Bureaus, bank branches and hotels. The last is only for their clients.

Additionally, visitors from abroad will have the option of changing convertible pesos for U.S. dollars or other accepted currencies at the international airports.

Article 15: Hotels, selected hard-currency stores and other authorized establishments will have a license from the Central Bank of Cuba for their money changing operations.

VI—“Entry into effect”

Article 16: The present resolution will come into effect on October 28, 2004, except in the aspect related to transactions effected solely in convertible pesos and the application of the 10% surcharge on the use of the U.S. dollar, which will come into effect from November 8, 2004.

TRANSITORY DISPOSITIONS

FIRST: The dispositions of Article 6 of this resolution will also apply to U.S. dollar accounts opened between October 26 to November 7, 2004.