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

Not My Job: We Quiz Craig Fugate, Head Of FEMA, On Zima

This week we've invited Craig Fugate, administrator of the Federal Emergency Management Agency, to the show. (So if a giant asteroid crashes into Earth while he plays our quiz, you're on your own.)
NPR

Farmers Wait, And Wait, For Guest Workers Amid H-2A Visa Delays

For the third year in a row, the H-2A visa program is running behind. That's left farmers waiting for planters and pickers even as the harvest season is well underway.
NPR

Be Like Bernie: Sanders Looks To Spread His Political Wealth

He's beginning to expand his political network by helping upstart progressive congressional candidates and state legislators, lending his fundraising prowess and national fame to boost their bids.
NPR

After Breast Cancer Diagnosis, She Channeled Her Ups And Downs Into Texts

NPR's Scott Simon talks with Natalie Sun about her project, textingwithcancer.com. The website won a Webby award, and documents her pessimism and optimism while undergoing chemotherapy.

Leave a Comment

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