Cuba to scrap dual currencies


MoneyMoves

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.

Cuba

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…

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About wanderingmark

World traveller, researcher, photographer, collector of interesting facts and cost of living data research for ECA International (www.eca-international.com).
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