The Central Bank of Cuba has started taking measures toward ending Cuba’s dual monetary system. The two currencies in circulation in Cuba are the peso and the convertible peso valued at 24 pesos.
The exchange rate of the currencies hasn’t changed in a decade. The government claims that the convertible peso is equal to the dollar, but the imported goods have huge markups as they are purchased with tradeable currencies as Cuba’s currencies have no value abroad.
Cuba has banned the import and export of convertible pesos. Its inefficient state-run economy is in crisis due to the implosion of Venezuela’s economy and decades-old U.S. trade embargo.