New Year, New Life

New Year, New Life

Business

By Mercy Ramos

The beginning of a new year always brings with it multiple hopes for an improvement in the lives of all people and, on this occasion, without a doubt, those wishes will be multiplied, due to the difficulties suffered by the entire population of the planet because of the epidemiological situation caused by Covid-19, which has affected everyone's economy more strongly.

Cuba is preparing to begin 2021 with numerous changes in the lives of all Cubans, among which is the monetary reordering, a necessary measure for the country's economy, aggravated in recent months by the conditions caused by the pandemic, in addition to the usual The United States blockade imposed on Cuba for six decades, which was intensified by the outgoing Trump administration.

With the beginning of the year, the largest of the Antilles begins the application of the Ordering Task, which is a series of necessary economic measures that will contribute, in essence, to the improvement of the national economy.

These measures include, among the most important points, monetary unification. In other words, make the Cuban peso as only national currency and eliminate the CUC (convertible peso), established in the country for just over two decades, which will disappear from circulation in a period of six months.

There will also be a single exchange rate that will place the value of the national currency at 24 Cuban pesos against the US dollar. Another measure, also important, especially for the population, is the elimination of excessive subsidies and undue gratuities, as well as the transformation of income.

Workers' wages will increase significantly, in line with the increase in prices of multiple foods and services, which will reduce the subsidies paid so far by the state.

Companies will also be involved in this process, because until now in this sector the exchange rate was 1 x 1 and now it will be the same for 24 cup for 1 USD. For everyone's peace of mind, the new measures take vulnerable people into account. That is, those who cannot work due to age or illness. Suffice it to point out that while a 4.9-fold rise in the wage fund in the country is expected, the one earmarked for social security will do so five times.

According to recent statements by the Deputy Prime Minister and Minister of Economy and Planning, Alejandro Gil, Cuba will continue to expand and deepen its economic model and added that the importance of executing the four tasks contained in the monetary system is the only way to achieve a true transformation. However, he acknowledged that with the regulation some companies will face losses, but others will come out stronger. Those entities that substitute imports and have efficient economic performance will also benefit.

He stressed the need to create wealth to achieve prosperity. In essence, as the Cuban president, Miguel Díaz Canel-Bermudez, recently affirmed, monetary and exchange unification does not constitute the magic solution to economic and financial problems, “but it should lead us to increase labor productivity and a more efficient performance of the productive forces.”.

All these measures, as considered by the Minister of Economy and Planning, will benefit those who work primarily with the State, while the most vulnerable will receive the support of the country, which shows that the monetary system will generate important benefits for everyone.