Monetary ordering will allow other changes in Cuba's economy

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Monetary ordering will allow other changes in Cuba's economy
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Fecha de publicación: 
13 October 2020
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Havana, Oct 13 (Prensa Latina) Cuba's monetary ordering aims to solve the monetary and exchange duality, eliminate subsidies and gratuities, and transform people's revenues.
 
That process will include a pay raise, as well as the adjustment of wholesale and retail prices, said the head of the Permanent Commission for Implementation and Development, Marino Murillo, who added that the reform of salaries plays a key role in this process.

Murillo noted that the monetary ordering is a cross-cutting process in the country's economy aimed at solving macroeconomic unbalances, reducing budgetary deficits, favoring incentives to production, and improving efficiency and competitiveness internationally.

The official explained that as part of the monetary and exchange duality in Cuba, there is an overvaluation of the peso against the US dollar that hinders productive capacities.

Murillo repeated that the monetary unification will not be a long process and is supported by the Government so that legal and natural persons do not report losses.

Due to the negative impact of the Covid-19 pandemic, Cuba updated an economic plan that contains actions to reduce imports, favor exports, boost the application of science and technology, increase food production and foster productive linkages.

According to Deputy Prime Minister and Economy Minister Alejandro Gil, this strategy also considers centralized planning, market regulation, the complementariness of the economic stockholders and the dynamizing role of the domestic demand.

Gil explained that the monetary and exchange duality hinders the economy and affects prices, salaries, efficiency, incentives, the management of macroeconomic balances, comparability with the rest of the world and institutionality.

Amid an increasingly tightened blockade, it is not possible to manage this situation if the monetary ordering is not achieved to be able to make progress in other transformations, the two officials agreed.

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