Disir
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- Sep 30, 2011
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A major monetary reform that will hike prices and state wages in Cuba on Friday is sparking widespread uncertainty as the Communist-run island resumes market-oriented changes to its Soviet-style economy after years of flip-flopping.
The reform, announced earlier this month by President Miguel Diaz-Canel, will eliminate a complex dual currency and multiple exchange-rate system that masked a host of government subsidies, pegging the remaining peso currency at a single rate.
To reflect the resulting steep devaluation and reduced subsidies, Cuba is raising prices on goods and services ranging from transport to electricity at varying rates. It will also quintuple pensions and wages in the state sector, which employs around two-thirds of the working population, from the current low rates to better reflect the real value of labour.
www.theglobeandmail.com
This is going to be interesting to watch. I wonder if there was significant panic buying of toilet paper.
The reform, announced earlier this month by President Miguel Diaz-Canel, will eliminate a complex dual currency and multiple exchange-rate system that masked a host of government subsidies, pegging the remaining peso currency at a single rate.
To reflect the resulting steep devaluation and reduced subsidies, Cuba is raising prices on goods and services ranging from transport to electricity at varying rates. It will also quintuple pensions and wages in the state sector, which employs around two-thirds of the working population, from the current low rates to better reflect the real value of labour.
Cuba’s looming monetary reform sparks confusion, inflation fears
The reform, announced earlier this month by President Miguel Diaz-Canel, will eliminate a complex dual currency and multiple exchange-rate system
www.theglobeandmail.com
This is going to be interesting to watch. I wonder if there was significant panic buying of toilet paper.
