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11/02/09 - Miami Herald - Peso merger due 'soon,' diplomat says

The Cuban peso and the convertible peso (CUC), "Cuba's main units of
currency, will soon be fused for the purpose of simplifying the economic
operations conducted by the population and the visitors," a Cuban diplomat
told the Mexican electronic newspaper e-consulta.com. [Emphasis mine.]

Strictly speaking, the statement is not official and comes from a relatively
low-ranking diplomat - Alcides de la Rosa, Cuban consul in Veracruz - but
it's an indication that the changeover is being planned and will come (to
quote De la Rosa) "en breve" - in a short while.

The convertible peso was introduced in 1994 and formalized in 2004, when the
U.S. dollar ceased to be accepted in hard-currency stores. One CUC is the
equivalent of US$1.08; an exchange tax raises its cost to US$1.18.

The "national peso," also known as CUP, is a fraction of the CUC.
Twenty-four CUPs equal one CUC. The CUP is used to pay wages and buy
domestic products.

(fot2) In his first speech as the nation's top leader, Raúl Castro said in
February 2008:

. "We are examining, for instance, everything related to the timely
implementation of Comrade Fidel's ideas about the 'progressive, gradual and
prudent revaluation of the Cuban peso.' [...] At the same time, we are
delving deeply into the phenomenon of the dual currency in the economy."

. "To avoid traumatic effects and incongruities, any change related to the
currency must be made through an integral approach that takes into account,
among other factors, the wage system, the retail prices, the gratuities and
the million-dollar subsidies represented at present by the numerous services
and products that are distributed in an egalitarian manner, such as the book
of supplies [N.T.: ration book] which, in the current state of our economy,
are irrational and unsustainable."
-Renato Pérez Pizarro.