News

Cuba: “In Cuba People are Worried over the Two-Currency System”

HAVANA TIMES – Nowadays, when people popularly refer to the “Generation of 25” here in Cuba, they don’t mean any specific year, but are instead referring to all the Cubans who were born in the 1990s and have lived all their lives with two currencies.

As  Juan Triana Cordovi, a well known Cuban economist, has pointed out, “living with two currencies, buying with two currencies, eating with two currencies, thinking in two currencies” has been the most normal thing for this generation.

For Cubans born before the Revolution, who reached adulthood after January 1st 1959, this isn’t a very normal situation.

The objective of a “prosperous and sustainable socialism” won’t be met because one of these currencies is eliminated, which are really more than two, by the way, as there is the CUC-CL (currency certificate) which is backed by USD reserves and others which don’t have this guarantee.

Experts in these money issues have argued that our future prosperity will only come about when there is a single currency. If only things were that simple and one can partially understand why the new currency unification process is taking so long, because there are so many obstacles on the horizon.

In Triana’s opinion, “when there is a single currency and a single exchange rate, we will have to ensure monetary discipline” which the Havana University professor believes to be the most sensitive and complex issue not only in Cuba, but in any country.

The exchange rate of 1 CUC = 1 US dollar is really overpriced, which forces the CUC to be devalued against the US dollar, something which is already happening on the black market, where it went from 0.92 or 0.93 CUC for one dollar to 0.97 this year.

More

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s