Cuban exchange rates free#

Cuban exchange rates free#

The government has said some companies will be given a year to get their books in order before ending subsidies, and it will continue to provide universal and free healthcare and education, some subsidized food and other social gratuities.Д¬uban economists estimate around 40% of state companies operate at a loss and though some will benefit from the monetary reform, such as those tied to the export sector, others will fail. Those who raised prices unduly would face severe sanctions, he said. 'The task is not void of risks,' said Diaz-Canel, saying it was one of the most complex challenges Cuba had faced but promising that 'no one will be left destitute'.

It has said the initial devaluation will be accompanied by a five-fold increase in average state wages and pensions even as many state-controlled prices are increased or allowed to respond to demand.Д«ut the wage increase does not apply to around two million of the seven million-plus labor force in the private sector, informal sector or who simply do not work. 'However it will favor the creation of the necessary conditions to advance in a more solid manner,' he said.Д®conomists expect triple-digit inflation, and government announcements in recent months suggest it does too. The government has said it will eliminate the CUC as part of the currency reform, although Diaz-Canel did not refer explicitly to it on Thursday, simply saying there would be just one exchange rate from January.Д®conomists say the reform spells short-term pain for Cubans but is important in the long-term as varying exchange rates have effectively subsidized some sectors and distorted the way economy works.Дiaz-Canel said it was no 'magic solution' to the cash-strapped country's economic problems. These have been exchanged at various rates: 1 to 1 for state-owned businesses, 24 pesos for 1 CUC for the public and others for joint ventures, wages in islandвЂ™s special development zone and transactions between farmers and hotels. For nearly three decades, two currencies have circulated in Cuba's state-run economy: the peso and the convertible peso (CUC), pegged to the dollar.