Cuba: re-dollarization of the economy and failure of the CUC

A few weeks ago the Cuban government announced a group of monetary transformations to face the complex financial and balance of payments situation that is overwhelming the economy. They are not related to the monetary reform that has been announced for years. They are not aimed at unifying the monetary system, but instead they produce new fragmentations. 

They don’t point to a definitive and long-term solution to the complex and distorting system of multiple types of exchanges and monetary duality. They are measures to face the current crisis and seek some quick relief from the growing financial imbalances that have been accumulating since 2015 in the wake of the Venezuelan crisis and the freezing of the promised structural reforms, a situation that since the end of 2017 has worsened with the intensification of the current U.S. administration’s economic sanctions. 


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