Cuba To Phase Out Two-Peso Currency System | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

Cuba To Phase Out Two-Peso Currency System

Cuba will end the two-currency system it has used for nearly 20 years. Since the collapse of the Soviet Union, Cuba has used either American currency or a peso that's pegged to the dollar alongside its national peso.

The monetary unification will phase out a system that has become a symbol of exclusivity and foreign wealth. Many products that are imported into the country can be bought only with the dollar-based convertible peso. But most Cubans are paid in the standard peso, which is worth just a fraction of the other currency.

"The policy exacerbated the creation of a two-tier class system in Cuba which divided privileged Cubans with access to the lucrative tourist and foreign-trade sectors from those working in the local economy," the BBC reports, "all-too-visibly contradicting Cuba's supposedly egalitarian society."

Cuba's Central Bank says it will continue to back both the convertible peso, or CUC, and the Cuban peso, or CUP, when it begins the process of unifying the two currencies. The bank says the change will make it easier to calculate labor costs and other statistics, along with making Cuba's economic system more efficient.

No dates have been released for the plan, which has the backing of President Raul Castro. The change was announced in an official guideline published in the Communist state's Granma newspaper.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

Marvel's New Hero Wants To Save The World — And The Citrus Industry

Captain Citrus was sponsored by Florida's orange growers, whose profits are being hurt by disease and declining consumer demand for orange juice. They hope the comic character will boost sales.
NPR

Syrup Induces Pumpkin-Spiced Fever Dreams

Hugh Merwin, an editor at Grub Street, bought a 63-ounce jug of pumpkin spice syrup and put it in just about everything he ate for four days. As he tells NPR's Scott Simon, it did not go well.
NPR

Man Caught At White House Is An Army Veteran

Omar J. Gonzales, the 42-year-old man who the Secret Service says ran onto the White House grounds and entered a door Friday night, is an Army veteran who served in Iraq.
NPR

Drivers, Passengers Say Uber App Doesn't Always Yield Best Routes

People love Uber, but they often complain the Uber app's built-in navigation doesn't give its drivers the best directions. The company says the app helps drivers and passengers travel efficiently.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.