HAVANA, December 31. / TASS /. Cuba’s monetary reform eliminating the circulation of the convertible peso has settled a series of complications in the objective assessment of the country’s economic situation, Russian trade representative in Cuba, Alexander Bogatyr, told TASS.
“The presence of two currencies in the country has complicated the task of implementing the objective assessment of the economic situation and plans for its development accordingly, as it appeared that two categories of business entities are in place, functioning in different economic realities. Some of them depended more on international markets; dependence on others was lower. Some of them have nominally higher production costs and manufacturing costs, while others have them smaller. The monetary reform implemented in Cuba in January 2021 ended this “monetary duality”, “said the trade representative.
The significant increase in inflation is not directly related to monetary reform, Bogatyr said. “Regarding the growth of inflation in Cuba, I would choose not to associate this phenomenon directly with monetary unification. Inflation is caused to a greater extent by the ability to maintain the balance of demand. and the supply in the domestic market, the amount of currency in circulation and its commodity coverage. The factor of imported inflation is also in place, “he added.