Another step in the elimination of CUC: shopping malls entirely in Cuban pesos

The Cuban government has just announced through the Granma newspaper another measure that could be seen as a prelude to the elimination of the Cuban Convertible Peso (CUC): the complete independence of the Cuban Peso (CUP) in some foreign currency collection stores.

In other words, in these units it is possible to buy with Cuban pesos and the change received for these operations will no longer be in CUCbut in CUP. Although the purchase of items in stores has been permitted since 2014, CUP, the change or change was always given in CUC, which did not allow us to think of total independence from the Cuban Peso.

For the start of the experiment, according to what was disclosed Granma, “two commercial units have been selected in the chain of stores, one belonging to Tiendas Panamericanas, “Centro Comercial Almendares” located on the corner of 41st Avenue and 42nd Avenue in the Playa municipality and the other to the Tiendas Caribe Chain, “Centro Comercial de 5ta y 42”, the latter, located at the intersection of 42nd Avenue and 5th Avenue, also in the Playa municipality.

As the country's largest-circulation newspaper points out, depending on the results of this initial test, the program will be gradually expanded to other commercial units or shopping malls across the country.

The press release, signed by the Central Bank of Cuba, states that the measure is being implemented to provide better service to the population. Citizens had expressed dissatisfaction since the national currency began to be accepted in 2014 (CUP) in convertible peso stores, but the changes remained in CUC.

“In accordance with these criteria and after an evaluation, the population is informed that as part of the monetary ordering measures that are being implemented in the country, it has been decided to begin experimentally implementing the changes in Cuban pesos (CUP) in said retail network,” states the note published by Granma.

The news comes at a time when Cubans with savings are losing confidence in the CUC, as there are many warnings that seem to indicate their imminent end. In fact, just a few days ago, several media outlets reported on the possible disappearance of currency exchange offices (CADECAs) in some municipalities across the country starting in January.

Many claim that a comprehensive economic reform is imminent, after which only the Cuban peso could remain in the country, and certain services would be offered in foreign currency, as is already the case in the new stores that opened last October selling household appliances and automobiles.

The elimination of CUC It has been a stated goal of the Cuban government since 2011, and while steps have been taken toward its definitive elimination, there are still significant obstacles to overcome, especially in the business sector. However, some economists agree that the new year would be a good time to put an end to dual currency.

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