With the presence of Army General Raúl Castro Ruz, First Secretary of the Central Committee of the Communist Party of Cuba (PCC in Spanish), President of the Republic of Cuba Miguel Díaz-Canel Bermúdez informed the decision of the Political Bureau of the abovementioned body to communicate to the people of Cuba the beginning of the Economic Ordering Task, as it is known the process of elimination of the double-currency and double-exchange rate systems, and of the other changes that will come as part of this process.
“First, it must be said that the main concepts that will lead this work were established in the last two congresses of the Party.”
“Particularly, in the Seventh Congress, the Chapter 1 of the Conceptualization of the Cuban Social and Economic Model of Socialist Development establishes the redesign of the monetary, rate exchange, tax, credit, prices, salary and other income subsystems of the citizens.”
He added that the fortieth Guideline of the Economic and Social Policy sets that the conclusion of elimination of the double-currency and double-exchange rate systems as a major step in the monetary orderingof the country.
Likewise, the monetary ordering is one of the essential steps in the functioning of the financial system, for its significant importance and its cross-cutting impact in all the economy was confirmed in the Social and Economic Strategy for the Boost of the Economy passed this year, the President said in his speech.
“Since the month of October, we’ve been providing information on the steps of the Economic Ordering Task in the Mesa Redonda Show and on the most recent session of the National Assembly of the People’s Power.At the same time, information on this task have been widely spread on the media.”
“The structures involved in this task have undergone an intense training, which has provided helpful feedback in the last stage of preparations.”
The assessments and corresponding analysis have been completed, as well as all the necessary legal standards. Therefore, it was considered that the conditions are in place to announce the beginning of the task on January 1st, 2021 with a single exchange rateof 24 Cuban pesos for one US dollar, the Cuban President announced.
“We reiterate the transcendence and importance of this task, that will putt the country in better conditions to carry out the transformations required for the updating of our economic and social model, in order to guarantee equal opportunities, rights and social justice to all Cubans, which will not be possible by egalitarianism, but by motivating people to work.”
The Economic Ordering Task is not the magical solution to all the problems in Cuban economy. However, it will favor the conditions needed to advance in a more advantageous way, he added.
Due to its comprehensive nature, it is one of the more complex tasks Cuba has faced in the economic order, Díaz-Canel said. “It becomes more complex due to the tightening of the blockade and the COVID-19pandemic, the international economic crisis and its impact on our economy.”
This task is not risk-free, he continued. “One of the main risks is that the inflation surpasses the expected levels, intensified by the current shortages. Predatory and speculative prices will not be allowed, they will be tackled socially with containment measures and severe punishment to those who break the law.”
The successful outcome of this task will depend on the effort and the cooperation of everyone in order to attain the expected results, he said. As usual, the government will be open to the people’s input to attend to any problem that may arise from the implementation, he added.
The conditions are created to make sure nobody is left defenseless, that Cuba will never use shock therapy against the people and the transformations that should be undertaken in the social and economic model will be carried out with the previous agreement that helps maintain the unity of the country, expressed Díaz-Canel.
“Monetary ordering also creates the conditions so the business sector can take the proper decision and fully exert the authority it has been granted, which will allow them to react positively, increasing the profits for workers and all society.”
“We’re certain that, with the effort of all the people, the dedication and proper overseeing, we will reach the proposed goals for economic growth and efficiency.”
“From this moment on, we will provide detailed information to the population on the content of each of the measures of the Economic Ordering Task,” he concluded.
Translatedby ESTI
