Historical Economic Reforms: Cuba – Understand the Changes in the Economy

Historical Economic Reforms: Cuba - Understand the Changes in the Economy

Cuba Che Guevara
Wikimedia Commons

Cuba made historic economic recovery in early 2021, with news from the monetary system

After 62 years of the Cuban revolution, the country begins with reforms from 2021 that have a major impact on the local economy. The anniversary of the Revolution of January 1, 1959 was marked as the ‘Zero Day’ of the monetary system in Cuban history.

As of this Friday, the first day of 2021, Cuban Pesos
Henceforth the country’s single currency. $ 1 equals 24 Cuban pesos. The Cuban convertible, which was equivalent to the US dollar and was also operational, exists.

With exchange system integration, Cuba
It increases the prices of food, services, basic goods, as well as wages and pensions. Simply put, it is a kind of new currency, in which everything has a new value. According to analysts, Economic recovery
It is the largest since the 1990s.

The measures come at a troubled time for the island, which is facing an economic crisis due to government-imposed epidemics and sanctions Donald Trump
. According to the Cuban government, the economy declined by 11% in 2020. The epidemic in the United States, and resulted in a sharp decline in tourism – and the crisis in Venezuela complicated the situation in Cuba, which faced severe valuations of the currency.

The Cuban people fear that the changes imposed by economic reforms will make their lives more difficult, with insufficient to compensate for rising food and staple prices because of rising salaries and pensions. The state media itself acknowledges that the measures are likely to be effective and can complicate things in the short term, requiring abandonment and action.

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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