Cuba announces that it will bring an end to its dual-currency system. Interesting times ahead.

    • @BobsonDugnuttOP
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      34 years ago

      I don’t know enough to make a solid call on this but they are moving to a model of providing food subsidies to people instead of providing the people with subsidized food, so this is an attempt at addressing issues of hoarding and speculation on necessities because each person will have access to limited subsidy rather than unlimited subsidized products.

      There is also the devaluing of the CUC which is a move to shift the concentration of wealth from the hands of the tourism and tourist-adjacent industries and operators back into the general population, which I think is a good thing and it’s necessary for the benefit of the people of Cuba because it will mitigate the uneven development that the tourism industry brought about.

      It looks like they are also shifting their economy to focus on domestic production over imports as a way to keep wealth circulating in their internal economy where possible rather than being bled dry by heavy reliance on imports, like you see happening in many developing countries around the world.

      I would expect to see some radical economists coming up with deeper and more comprehensive analysis in the coming weeks so keep an eye out for that, take my analysis with a grain of salt, and I guess the only way that we’ll really understand the impacts is with time.