In Cuba, new monetary order will be gradual and just

The elimination of excessive subsidies and undue gratuities within the monetary system will be carried out in Cuba gradually and protecting vulnerable sectors, a government practice in force today on the island.

The head of the Commission for carrying out the Guidelines of the Communist Party of Cuba, Marino Murillo, explained the eve that this process is part of the social fairness with which the Economic and Social Strategy is implemented to favor the economic development of the country.

Explaining the important role of the monetary system, effective as of next January 1, he confirmed that it will be carried out with all the necessary legal conditions and standards, under the principle of not leaving any Cuban unprotected.

Murillo reiterated that from that date on there will be only one national currency of legal tender, the Cuban peso (CUP), and there will be a single exchange rate against the dollar in a ratio of 24 to one.

Currently, Cuba has an exchange rate for the population (25 CUP = 1 CUC = 1 USD), and another for legal entities (1 CUC = 1 CUP = 1 USD), which generates confusion in measuring the real costs of business activity and distorts profitability analyses.

This process also modifies the distribution of income that aims for salaries to be the main source of wealth and income, that guarantees to cover the needs of workers and their families.

The wages will not only support the calculated increase in prices, but also improve pensions and social security benefits.

Murillo stressed that one million 671 thousand retirees of this country will benefit and all will earn 1,528 pesos or more, since that will be the value of the basic basket of goods and services.

In relation to social security, as has been reiterated, no one will be left helpless, and for that the State has a fund of 700 million pesos, to serve the most vulnerable.

From now on, people and not products will be subsidized and later a deeper analysis will make it possible to determine from the income of each family who really needs help to cover the cost of basic products.

To that end, a group of important subsidies valued at about 30 billion pesos are maintained. Among the goods that will have financial support from the government are those that are specifically delivered to children from zero to six years old.

Even when there is a controlled rise in prices of goods and services, this will be in proportion to the increase in wages, pensions and social security.