Cuba will end its decades-old dual currency system and have a single unified exchange rate of 24 pesos per dollar from January, President Miguel Diaz-Canel said.
Streamlining the currency system will put the country on a sounder footing “to go ahead with the transformations that we need to update our economic and social model,” Diaz-Canel said in a televised speech on late Thursday, accompanied by former president Raul Castro.
A partir del primero de enero de 2021 comienza la Tarea ordenamiento, aplicándose una tasa de cambio de 24 pesos MN por 1 dólar, informó el Presidente de #Cuba en comparecencia especial, acompañado por el General de Ejército Raúl Castro, Primer Secretario del Partido Comunista pic.twitter.com/s9wDQvmnV9
The socialist economy has been hurt by the slump in tourism income since the pandemic began, and was already suffering under the US embargo. The unification of the currencies is part of a wider reform package which the government has also said will also include modification of some prices and subsidies.
Diaz-Canel had announced the unification of the exchanges in October, saying details would be provided at a later date. Since 1994, foreigners have had access to the Convertible Cuban Peso, or CUC, pegged to the dollar, while ordinary Cubans mainly used the much weaker Cuban peso. The change will take effect from Jan. 1.
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