Eliminating monetary duality in Cuba

  1. Álvaro González Lorente 1
  2. Montserrat Hernández López 1
  3. Francisco Javier Martín Álvarez 1
  4. Javier Mendoza Jiménez 1
  1. 1 Universidad de La Laguna
    info

    Universidad de La Laguna

    San Cristobal de La Laguna, España

    ROR https://ror.org/01r9z8p25

Journal:
Estudios de economía aplicada

ISSN: 1133-3197,  1697-5731

Year of publication: 2020

Issue Title: Challenges in the construction of composite indicators

Volume: 38

Issue: 1

Type: Article

DOI: 10.25115/EAE.V38I1.2856 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Estudios de economía aplicada

Abstract

Since monetary duality was adopted in Cuba in August 1994, two currencies have coexisted on the Island: the Cuban convertible peso (CUC) and the Cuban national peso (CUP). There is a double fixed exchange rate between the CUC and CUP and between the CUC and the US dollar (USD). In reality, there is also a fixed exchange rate between CUP and USD, consequently, monetary unification seems necessary. The problem lies in setting the exchange rate of the currency that will survive (CUP) versus the eliminated one (CUC). In this article, a review of the most interesting aspects of this situation is conducted, and arguments are put forward as to what would be the most appropriate exchange rate between the Cuban national currency and the Cuban convertible peso.

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