Weekly Report - 24 October 2013 (WR-13-42)

The Cuban government has announced plans to eliminate gradually its dual currency system, finally moving to address the most fundamental barrier to proper economic reform in the country. In the short-term, currency reform will create winners and losers. The official statement sought to reassure Cubans that their savings will be respected. However, over the medium-to-long term successful reform should generate benefits for all Cubans. If managed properly, it could also support the ongoing rule of the ruling Partido Comunista de Cuba (PCC) in a country that is far better off than it is today.