Jul 17, 2022
In General Discussions
Questions about why there are two Country Email List currencies in Cuba and when will monetary and exchange unification take place are a constant among people who live on the island or those who are interested in its economy. Since the 1990s, the convertible Cuban peso (CUC) began to operate parallel to the Cuban peso. The Country Email List origin of this decision was associated with the loss of the functions of the money of the peso (CUP) (as a means of payment, store of value and unit of account), after the strong contraction of the domestic economy triggered by the disappearance of the socialist Country Email List camp. , which accounted for 85% of Cuban foreign trade. The CUC began to circulate in 1994 in a Country Email List network of currency collection stores, established since 1993, the year in which the possession of foreign currency in Cuba was authorized, the entry of remittances Country Email List was stimulated and the free circulation of the dollar was allowed. For a decade, the CUP, the CUC and the dollar coexisted in the Cuban economy, which gave rise to a complex reality to manage and maintain over time. Within this framework, two different exchange rates Country Email List were set: one for the population and another for the business sector. The first has remained stable in Country Email List recent years at an equivalent of 24 CUP per CUC, for which exchange houses were established throughout the country (CADECA). The second was anchored to the prevailing exchange rate between the dollar and the CUP, that is, 1 dollar=1 CUC=1 CUP. up to 2004, it was guaranteed Country Email List that CUCs would be issued that were backed by the dollar, that is, for each CUC in circulation there was a dollar backing it. After that date, that convertibility ceased to exist Country Email List and the CUC became an overissued currency.