The "zero day" of the Cuban economy This Country Email List corporate exchange rate, clearly overvalued, has distorted the national accounts and has privileged, for decades, purposes contrary to those officially declared. When the objectives of economic policy Country Email List are contrasted from the reform of the 1990s (even much earlier) to the present, the desire to promote exports and substitute imports is repeated. However, the fixed exchange rate is a policy instrument that Country Email List promotes opposite effects.
This has generated that, for example, export Country Email List activities sometimes require subsidies, since when calculating their income and expenses using the exchange rate of 1 dollar = 1 CUP, their costs can be significantly higher than their income, with Country Email List what which demand support from the state budget. In the same way, it turns out that, artificially, it is more profitable to buy food abroad that could well be produced in Cuba, such as fruit, vegetables, milk, among others. Another clear example is that it is more profitable for a peasant to sell his Country Email List productions in the agricultural market than to export.
In the 2000s, the dollar was eliminated Country Email List from circulation and business transactions and only the CUP and CUC remained. For several years, the need to move towards monetary and exchange unification has been sustained, and this purpose was Country Email List reflected in the document Guidelines for the Economic and Social Policy of the Party and the Revolution aimed at updating the Cuban economic and social model, approved in 2011. Guideline 55 states, for example: “Monetary unification will be advanced, taking into account labor productivity and the effectiveness of Country Email List distributive and redistributive mechanisms. Due to its complexity, this process will require rigorous preparation and execution, both objectively and subjectively.