Cuba Will Have Unified Exchange Rate Since January

Cuban President Miguel Diaz-Canel said during a Sunday night televised speech in Havana that the island will end its decades-old dual currency system and start having a single unified exchange of 24 pesos per dollar from January 2021.

Cuban President Miguel Diaz-Canel said during a Sunday night televised speech in Havana that the island will end its decades-old dual currency system and start having a single unified exchange of 24 pesos per dollar from January 2021.

Accompanied by former president Raul Castro, Diaz-Canel said that streamlining the currency system will put the nation on a sounder footing “to go ahead with the transformations that we need to update our economic and social model.”

During an interview with NTN 24’s Gustau Alegret, president of the US-Cuba Trade and Economic Council John Kavulich said that while currency unification is long overdue, it will be painful for Cuban citizens who receive part of their income by the communist regime in convertible pesos, since they’ll have their purchasing power eroded. “The Cuban leadership is implementing painful reforms during one of its bleakest moments,” Kavulich said.

The Cuban president had announced the unification in October. Experts believe this modification also potentially opens the door to a fluctuating exchange rate. In the Official Gazette announcing the new rules, the communist regime said the value of the peso will be determined by the Central Bank of Cuba and the exchange rate will be “published daily on its website.”


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