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October 21, 2019

Cuban central bank denied rumors for merger of the two country’s currencies

Cuba peso convertibleThe Cuban central bank denied rumors that it would withdraw from circulation one of the two currencies used on the island. In the last days, the troubled Cubans rushed to replace their convertible Cuban peso with the ordinary peso. The date for the start of the so-called unification of the two currencies has not yet been determined, according to the bank.

Over the past few weeks, the number of people who want to convert Cuban pesos into a ordinary peso at the bank branches or exchange bureaus has risen. This is due to the rumors that in the next few days the convertible peso will be withdrawn from circulation.

Over two decades, Cuba has two currencies – a peso in which most wages are paid and convertible peso used for tourism, foreign trade, expensive restaurants, and imported goods.

In 2011, the Communist Party, led by Raul Castro, adopted a plan to improve the economy by introducing market mechanisms, including currency reunification. It is planned to keep the peso and the convertible peso to remain in the history.

In December, Castro said the reform could not be delayed any more, which prompted speculation that currency reunification could be announced before he retired from the presidency on April 19th. Castro will remain the party leader until 2021.

The central bank reminded last night the party’s decision at its last congress to secure bank deposits in both foreign currencies.

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