Monetary Unification Must Still Wait in Cuba

HAVANA TIMES – Cuban President Raul Castro said on Sunday that studies continue on the removal of the dual currency monetary system prevailing on the island, Prensa Latina reported.  Castro make the statement in his closing speech of a parliament session.

“This effort will require careful preparation and execution, both in the objective and subjective”, said the president, adding that he hopes to unify the two currencies “in an orderly and comprehensive manner, to make possible far-reaching changes.”

Most citizens of the island receive low wages in regular Cuban pesos, with much less value (1:24) than the CUC, the currency with which it sells most of the products in the state run stores.

Castro has been announcing his goal of monetary unification since coming to power, without achieving it thus far.

 


11 thoughts on “Monetary Unification Must Still Wait in Cuba

  • October 22, 2014 at 4:08 pm
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    Hi Griffin,
    Since this article was published, Cuba has undertaken a piecemeal approach to eliminating the two-currency system, and a number of decrees published this year make clear that the CUC will be eliminated and provide subtle hints of preparations for currency unification. We still don’t know when currency unification will take place (Dia Cero).

  • July 10, 2013 at 12:16 pm
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    I am not so optimistic. I see the economic reforms, including the expansion of the FAR owned holding companies, together with the lack of political reforms, as a sign of a more ominous transformation. The last vestiges of “socialism” will fade away to be replaced with a post-modern Fascist regime. State-owned monopolies control the economy. The PCC will continue to control the political process, and the military in charge of all the key positions of power.

  • July 10, 2013 at 10:04 am
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    As Griffin has commented, waiting to do so only worsens the effect. The good news is that as Venezuela also continues to suffer from a falling currency as well, Cuba has a buddy to commiserate with. They can hold hands as they circle the drain.

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