Advertisement

Cuba to eliminate special currency for foreigners; gov’t pledges deposits to retain value

A Cuban shows Cuban Pesos CUP (Left hand) and Convertible Pesos CUC (Right hand), on October 22, 2013 in Havana. YAMIL LAGE/AFP/Getty Images

HAVANA, Cuba – Cuba’s top economic official says the country will eliminate a special currency designed for foreign exchange as part of a move to end the island’s unique double-currency system.

Tourists use a convertible peso equal to a U.S. dollar while most Cubans are paid in pesos worth about four cents. Many goods are easier to find in government stores that exclusively accept convertible pesos. The dual system creates privileges for those who work in tourism, and resentment from those who don’t.

Financial news and insights delivered to your email every Saturday.

The government has pledged to unify the two currencies.

Vice-President Marino Murillo told parliament Friday that the special peso would eventually disappear, the first time the government has explicitly said that. He promised that savings in convertible pesos would retain their value until the change took place.

Sponsored content

AdChoices