Cuba to end decades old 'dual currency system', will eliminate convertible peso

Cuba on December 12 anunced that it will unify Cuban peso and Cuban convertible peso as one currency, and put an end to deces-old dual currency system effective January 1, 2021. President Miguel Diaz-Canel said in a statement that country will begin reforms in its currency system beginning 2021, ding, that he will introduce a single exchange rate of 24 Cuban pesos for one dollar. In a state television dress, Cuban president, alongside Raul Castro, country's former president, and Communist Party leer told citizens that he was going to eliminate convertible peso, or CUC, created in 1994, and will opt Cuban peso, or CUP as official currency. 

In a live-streamed dress, Cuban leer emphasized that country needed to upgre ecomic and social framework with new reforms, and unifying currency into one will ease tre and commerce. Mainly, because country was reeling under ecomic impact of global coronavirus pandemic that has lately slumped tourism and rendered businesses in loss. Amid “bleakest moments” of country, president reportedly said that se reforms will stabilize fluctuating exchange rate. However, it might create hurdles for employees that received ir salaries in convertible pesos, Cuban President warned, ding, that those that used convertible pesos, ir purchasing power eroded in midst of health crisis and lockdown. 

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Rift in 'consumer purchasing power'

According to several media reports, experts have hailed move as beneficial for consumers as for over several years, government reportedly set low prices for goods and services for basic rights, and high prices for luxury brands. This created a rift in consumer purchasing power and hampered ecomic growth in country. Meanwhile, Cuban ecomy dramatically suffered under sanctions imposed by US President Donald Trump who stricter imports of Cuban goods and banned Americans from staying at properties owned by Cuban government. monetary change, according to ecomists, will reposition country for better.

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(Im Credit: AP)