HAVANA (AP) — Cuba is the only country in the world that mints two national currencies, a bizarre system that even President Raul Castro acknowledges is hamstringing the island’s socialist economy and must be scrapped.
Exactly how to do that is the problem.
Months after Castro made currency unification a centerpiece of a forceful address to parliament, no details have been made public. But a pilot program operating under the radar might hold clues to a way out.
Since the system was created in 1994, most islanders have been paid in national pesos worth 24 to the dollar in exchange houses, while tourists and the Cubans who attend to them receive a much more valuable peso pegged at 1-to-1 with the U.S. greenback.
It’s not a “socialist” economy, it’s a communisty economy. If such atrocities can even be called economies.
And since communism does not work in the real world, the Cuban financial structure is a laughable failure requiring the constant equivalent of spit, baling wire, and duct tape to patch it into a semblance of workability. Like the idiotic dual currency system described above.