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Cuba Plans To Devalue The Currency For The First Time Since The Revolution

Cuba Plans To Devalue The Currency For The First Time Since The Revolution

Cuban authorities plan to devalue the convertible peso for the first time since the 1959 revolution, Reuters reported, citing sources. The country now has two types of currencies — the convertible and the regular peso. The government of Cuba sets the exchange rates.

According to the Agency, the authorities plan to combine the two currencies. The regular peso will be saved, but the convertible one will be canceled. The measure will be part of reforms aimed at fighting the economic crisis amid US sanctions and the coronavirus pandemic. Reuters notes that this year the shortage of essential goods has worsened, and queues have appeared in stores. Many Cubans are out of work.

According to economist Omar Everleny, the most important measure will be the change in the exchange rate for state-owned companies. According to him, the authorities are considering several options, but the rate will be from $10. The value of the peso against the Canadian dollar, Euro, and other currencies will also be adjusted downward based on international market rates.

According to Johns Hopkins University, 4551 cases of coronavirus infection were registered in Cuba, 106 people died, and 3779 recovered.

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