Double Trouble: Currency Unification in Cuba
Double Trouble: Currency Unification in Cuba
By
Yaima Doimeadios, Vilma Hidalgo
The plan to unify Cuba's dual currencies will produce winners—and losers.
After nearly 20 years, the dual currency system enacted by Cuba to help mitigate the economic shock from the collapse of the Soviet Union is set to be retired. As part of the government’s efforts to develop the country’s socialist economy, the Cuban government recently announced that it would unify its complicated currency system.
In practice, the dual currency system has meant the simultaneous circulation of two domestic currencies: Cuban Pesos (Cup) and Convertible Cuban Pesos (Cuc), which is pegged to the U.S. dollar. Today, the system includes multiple...
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