Cuba Gears Up for Currency Unification

Cuba is laying plans to move to a single currency, a reform that many feel is one of the toughest challenges facing President Raul Castro as he tries to kick-start the Communist country’s moribund economy.

For years Cuba has had two currencies–the peso (CUP), in which most wages are paid and local goods priced, and the convertible peso (CUC), used in tourism, foreign trade and some stores carrying imported goods.

The peso, says the government, will remain and the CUC will become history.

Economists applaud the government plan, but secrecy over the all-important details of how and when the change will come is causing some anxiety in the country.

News this month that state companies were ordered to prepare for unification and that personnel are being trained for what the government dubs “Day Zero” has added to the worry.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza