The peso will remain as Cuba's only official currency

The regular Cuban peso (CUP) will remain as the island's official currency at an exchange rate initially of 24 to one US dollar as part of an overhaul of the economy, President Miguel Diaz-Canel announced today in a special message to the nation.

In a radio and television hookup tonight, Diaz-Canel accompanied by Army General and First Secretary of the Cuban Communist Party, Raul Castro, said that the plan to unify the Cuban currency will kick off on January 1, 2021.

For a little more than 20 years Cubans have had two currencies, the CUP and the convertible peso (CUC) that was introduced in the late 90's for all national transactions, but this two-teer monetary system became a burden for the necessary boosting of the economy, economists and officials have been upholding for some time.

To cushion the impact on the people of the monetary unification, State officials have been telling the nation lately that the process to do away with the CUC will take six months.

The President assured that people's resources in CUC either in hand or in saving bank accounts will be respected at the current exchange rate, which is 24 CUPs to one CUC.

Faced with a tough economic and financial crisis due to the effects of the Covid-19 pandemic, worsened by a hardened US blockade, the Cuban Government opened retail shops in hard currency with the use of personal banking cards in an effort to collect foreign monetary assets.

The monetary unification is part of a broader program, known as economic reordering, that envisions, too, a wage rise, in conjuction with a price hike equivalent to the salary raise, tariff increase, change in subsidy plans, among other economic measures designed to respond to Cuba's reality, prop up the economy and boost development.

Diaz-Canel stressed that the Cuban State will not neglect any of the country's citizens, asserting welfare programs and social plans will be in place to help those with less monetary income.

He further said tough sanctions will be imposed on those who manipulate and speculate with prices and illicit money changing.

Before winding down his message, the President announce that further information will be provided to the nation from ministers in coming days.