Jan 19, 2022
In Welcome to the Forum
Who live on the island or industry leads those who are interested in its economy. Since the 1990s, the convertible Cuban peso (CUC) began to operate parallel to the Cuban peso. The origin of this decision was associated with the loss of the functions of the money of the industry leads peso (CUP) (as a means of payment, store of value and unit of account), after the strong contraction of the domestic economy triggered by the disappearance of the socialist camp. , which accounted for 85% of Cuban foreign trade. The CUC began to circulate in 1994 in a industry leads network of currency collection stores, established since 1993, the year in which the possession of foreign currency in Cuba was authorized, The entry of remittances was industry leads stimulated and the free circulation of the dollar was allowed. For a decade, the CUP, the CUC and the dollar coexisted in the Cuban economy, which gave rise to a complex reality to manage and maintain over time. industry leads Within this framework, two different exchange rates were set: one for the population and another for the business sector. The first has remained stable in recent years at an equivalent of 24 CUP per CUC, for which exchange houses were industry leads established throughout the country (CADECA). The second was anchored to the industry leads prevailing exchange rate between the dollar and the CUP, that is, 1 dollar=1 CUC=1 CUP. up to 2004, it was guaranteed that CUCs would be issued that were backed by the dollar, that is, for each CUC in circulation there industry leads was a dollar backing it. After that date, that convertibility ceased to exist and the CUC became an overissued currency. This corporate exchange rate, clearly overvalued, has industry leads distorted the national accounts and has privileged, for decades, purposes contrary to those officially declared.