Dollar makes a comeback as Cuba readies currency devaluation

Sun Online Desk

11th October, 2020 02:38:13 printer

Dollar makes a comeback as Cuba readies currency devaluation

The US dollar is making a comeback as the favored currency in communist-run Cuba as the country prepares to devalue the peso to relieve pressure on a battered economy.

Cuba has a unique system whereby two official currencies have existed side-by-side for nearly three decades, the Cuban peso and convertible peso, the CUC.

Long lines outside food stores are a common sight in Havana amid chronic shortages of basic goods, and with the government planning to call time on the CUC shopkeepers are already rejecting the currency, driving a rush to dollars for those who can get them.

“CUC not accepted” reads the sign at the entry to one Havana shop.

The island’s economy, buffeted by ever-tightening US sanctions, has been hammered by the coronavirus pandemic, which has left Cuba without much-needed foreign revenue provided by its Caribbean beach tourism.

The UN Economic Commission for Latin America forecasts GDP to plummet 8.0 percent this year.

(AFP)

 


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