Cuba to scrap currency pegged to dollarDecember 21, 2013 - 09:46 AMT PanARMENIAN.Net - Cuba is to scrap a currency pegged to the dollar in a move to end the island's double-money system which had become a symbol of economic inequality, according to the Associated Press. Tourists currently 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 and the dual system creates privileges for those who work in tourism. Now the government of President Raul Castro had pledged to unify the two currencies. Vice President Marino Murillo told parliament the special peso, known as the CUC, would eventually disappear - the first time the government has explicitly said that. He promised savings in convertible pesos would retain their value until the change took place. "People who have the convertible Cuban peso (CUC), whether in the banks or kept at home, will not lose any financial capacity when the dual monetary system is eliminated," said Murillo. He did not say when the change would go into effect. The double monetary system was established in 1994 amid an economic crisis sparked by the fall of the Soviet Union, which heavily subsidised Cuba for decades. It was designed to allow Cuba to receive hard currency needed for international trade from the outside world while insulating the rest of the communist economy from market influences. In October the official newspaper Granma said that the government's first step would be to allow several businesses that currently accept only convertible pesos, or CUCS, to do business in ordinary Cuban pesos, or CUP. The official exchange rate will remain in effect, Granma said, meaning the goods themselves will remain out of reach for Cubans without access to the foreign exchange-driven economy, which includes millions of dollars a year in remittances from relatives in the United States and other countries. Related links: Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |