Cuba to scrap dual currencies


Cuban government announces it will dismantle currency regime, but doesn’t say when…

It’s fair to say that Cuba’s double exchange rate, essentially in place since 1994, hasn’t really worked. Instead of bolstering equality, as it was officially supposed to do, it has benefitted a few privileged sections of society above everyone else.


The system consists of two currencies; the convertible peso (CUC), pegged to the US dollar, and the non-convertible peso (CUP), worth about 4% of the CUC. The higher-value CUC was supposed to be used only in the vital tourism sector, to be spent in so-called ‘dollar shops’ (virtually the only places one can buy quality imported goods) and for foreign trade, but, as with all multiple-exchange rates, it has broadened the scope for arbitrage, corruption and self-enrichment, creating a few ‘haves’ and notably more ‘have nots’.  Jobs serving foreign holidaymakers have become in many peoples’ eyes the only ones worth having, purely because…

View original post 180 more words

About wanderingmark

World traveller, researcher, photographer, collector of interesting facts and cost of living data research for ECA International (
This entry was posted in Cuba. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s