Currency reforms on way

Currency reforms on way

MADRID: Cuba is to abolish its dual monetary system as the country
pursues economic reform under new leader Raul Castro, a senior official
said in an interview yesterday.

The Communist Caribbean island state operates with the convertible peso,
worth just under a US dollar, and the national peso, worth far less.

Cubans are paid in national pesos but require convertible pesos to buy
certain goods.

"Cuba will reform its monetary system as quickly as possible," the head
of the Cuban parliament's economic commission, Osvaldo Martinez, said.

"The government's policy is to eliminate the dual currency, which to
some extent hurts the country's self-esteem, but we need a minimum
quantity of monetary reserves for a normal exchange rate, prices and
wages reform and greater economic efficiency," he said.

Since succeeding his ailing brother Fidel, in February, Raul Castro has
eased a number of the tight restrictions on Cuban life, including
allowing citizens to own mobile phones, rent cars, stay in tourist
hotels and buy modern electrical goods.

Most Cubans, however, can still not afford to pay for such luxuries.

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