More money sent to Cuba

A huge increase has been reported in the amount of money being sent home from Americans living in Cuba, following a decision by both Cuba and the United States to ease restrictions on remittances.



The United States Treasury Department authorised the payment of remittances in Cuba's convertible peso just over a week ago.



Previously transfers to Cubans on the island could only be made in US dollars, which are subject to a 10 per cent surcharge.



Havana says the new measure, which could see the Cuban government losing up to $100 million a year in tax revenue, is an attempt by President Raul Castro to bring the black economy into the mainstream.