The Ministry of Finance and Prices of Cuba has published the rules determining the conformation of the retail and wholesale prices in the Cuban economy … after day zero.
What is Day Zero? The Official Gazette explains it will be the day prior to the time of the monetary unification, suggesting they will not keep absolutely secret the date of the end of dual currency in Cuba.
Resolution 19 of 2014 of the Ministry of Finance and Prices gives a series of instructions on how State agencies must proceed when this occurs.
The said time of disposal of the dual currency will be the moment when the unifying rate at which Cuban pesos will be listed comes into force, before one of them disappears. According to Vice President Marino Murillo, the Cuban peso (popularly called the national currency) is what will remain in circulation
The new legislation gives no reason to make a run towards the banks and CADECAS . The resolution is limited to issuing an accounting standard that establishes “the elements for the accounting of the removal process of the convertible peso “on financial transactions between economic entities, and a methodology to implement the post -CUC Pricing Policy.
The Cuban economist Pavel Vidal, one of the authorities on the issue of the dual currency, says the eventual devaluation of the official exchange rate (1-1) needed to establish the unified rate will produce that “almost all ratios, relative prices and the financial performance of companies, banks, other institutions and the state budget will change.”
He also states that “a second effect would be an increase in inflation. The increased cost – multiplying by a higher exchange rate value in convertible pesos and foreign exchange inputs and capital costs – could be traded by companies to the final prices of the goods and services they sell. “
Although it will not affect immediately the lives of Cubans, Resolution 19 is a legal proof that the elimination of the dual currency is underway … and they mean it.
Author
Javier Ortiz
