Author Topic: End of Dual currency  (Read 105 times)

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Offline Pabitra

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End of Dual currency
« on: December 11, 2020, 11:40:57 AM »
As of Jan 2021 Cuba stops the double currency, I assume this is an end of the CUC coins and notes.

Translated from German

Cuba wants to abolish one of its two currencies. From January 1st, only one currency called the peso should circulate, as the President of the Caribbean country, Miguel Diaz-Canel, announced yesterday (local time) on television.

The exchange rate is said to be 24 pesos to one US dollar. The standardization of the currency will create better conditions to guarantee Cuba's citizens equal opportunities and social justice, it said.

The socialist island state has had a dual currency system since 1994. In addition to the official national currency, the peso (CUP), the Peso Cubano Convertible (CUC) applies to payment transactions. The CUC value corresponds to that of the US dollar, the exchange rate to the CUP is one to 25. While the CUP is used by Cubans in the heavily subsidized state sector, foreign tourists pay in CUC.

In July, Cuba had already abolished a ten percent tax on dollar purchases that had been in force since 2004 due to a lack of tourism income in the coronavirus pandemic. Since then, certain products can also be paid for by card in US currency in some stores.