Cuba is to scrap its
two-currency system in the latest financial reform rolled out by
President Raul Castro, official media report on Tuesday Oct 22,2013
- Cuba's convertible peso (CUC) is pegged to the US dollar and
- the local peso (CUP) is valued at a fraction of the greenback's value
Most wages and local goods are priced in CUP while the dollar-pegged CUC is used in the tourism industry, foreign trade and upscale eateries and stores carrying imported goods.
Neither are legal tender outside Cuba.
The two-currency system was supposed to protect Cuba's fragile economy but angered locals paid in the much lower-value CUP and denied access to goods only available for those with convertible pesos.
The Cuban Govt said it had approved a plan to gradually eliminate the dual monetary system that has been in place for the last two decades, part of reforms aimed at improving the Soviet-style economy's performance
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