Foreign investment to be favored by monetary overhaul

The Monetary Overhaul Task will favor the Cuban economy and particularly companies with foreign capital, a process that currently has a strategy for this new scenario, authorities from the Ministry of Foreign Trade and Investment (MINCEX) said.

Rodrigo Malmierca, Minister of Foreign Trade and Investment, and other officials of that Ministry assure that the elimination of the Cuban convertible peso (CUC) and the establishment of the Cuban peso (CUP) as the only legal tender will be favorable for all businesses with foreign capital.

The implementation of the so-called Monetary Overhaul Task will allow that entrepreneurs better calculate their investments, in a more balanced scenario and a stable and transparent macroeconomic environment, because the existing distortions in the economy will be gradually eliminated.

The minister alluded to a series of elements that should benefit companies with existing foreign capital in the country. One of them relates to prices in the national economy.

These companies and businesses that operated in convertible pesos as of January 1, they will do so in Cuban pesos, so the accounts of these foreign entities will be in Cuban pesos thus used for payments and local service providers. Each CUC of these accounts becomes 24 CUP.

Cuba plans to approve some 30 businesses with foreign capital in 2021, projects valued at US$3 billion, now in an advanced stage of negotiation, which should do their feasibility studies taking into account the elimination of the monetary and exchange duality.