Cuban economists in favor of merging currencies

Cuban economists in favor of merging currencies

Xinhua | 2013-10-25 11:17:46

By Agencies



Cuban economists on Thursday hailed the government's decision to phase

out the country's dual-currency system, calling it a key step towards

improving economic performance, local media reported.



Returning to a single currency makes the country's economic management

more efficient because of clearer register of costs, expenses and

pricing, said Danilo Guzman Dovao, the president of the National

Association of Economists and Accountants.



He said the dual-currency system had aided Cuba's economy during the

economic recession in the 1990s, but had eventually led to distortions

in the economy, its business sector and the lives of the Cuban citizens,

according to Juventud Rebelde, Cuba's Communist Youth daily.



Cuba witnessed an economic recession after the 1991 disintegration of

the Soviet Union, its major economic partner. Cuba has had two

currencies since 1994.



The two local currencies are the cheaper Cuban peso (CUP) and the

convertible peso (CUC). Most Cubans earn CUPs, while many local goods

are priced in CUCs.



Cuba announced Tuesday the move to scrap its dual-currency system as

part of the country's economic reforms.



"For ordinary citizens, having a single currency circulating in the

country would be a relief, doing away with the often tortuous process of

purchasing many of their staple items, only available in CUCs," said

Guzman Dovao.



Joaquin Infante, an award-winning economist, said the decision marked

the beginning of an urgently-needed process to modernize Cuba's economy

as effectively as possible.



"The process will begin with (state) companies, and then, according to

the increase in productivity and production, it will spread to the

private sector and the general public," he said.



Infante said the currency unification will more objectivly measure the

country's macroeconomic indicators, such as the gross domestic product

(GDP), the national income and the balance of payments.



Source: "Cuban economists in favor of merging currencies - WORLD -

Globaltimes.cn" - http://www.globaltimes.cn/content/820265.shtml