Cuba plans to abolish one of its two currency early next year

Cuba plans to abolish one of its two currency early next year

Cuba plans to abolish one of its two currency early next year. This was announced on state television by President Miguel Díaz-Canel. The president said that from January 1, only one currency called the peso will be in circulation. He added that the unification of the currency would create better conditions for ensuring equal opportunities and social justice for the citizens of Cuba. The exchange rate will be 24 pesos for one US dollar. The socialist island state has had a dual currency system since 1994. In addition to the official national currency, the so-called convertible peso is used for payment transactions, mostly by foreign tourists, and is roughly equivalent to the US dollar. In July, Cuba abolished the 10 percent tax on the purchase of dollars, which had been in force since 2004. The reason was the lack of income from tourism during the pandemic of the new coronavirus. Since then, it is possible to pay for some products in some stores with US currency cards.