IDEAS home Printed from
   My bibliography  Save this paper

Cuba: from "Dollarization" to "Euro-ization" or "Peso Re-Consolidation"?



Following Cuba’s "de-penalization," of the use of the dollar in August 1993, its role expanded rapidly. It now may be a more significant component of the overall money supply than the old peso. This generates some advantages but also contributes to some problems. The Government of Cuba has considered the advisability of switching to the Euro, and more important, consolidating the role of the peso. A forced switch to the Euro would produce many more problems than it resolved. In the longer term, it would be unwise to adopt a currency that was economically and geo-economically inappropriate for Cuba, given the inevitability of a normalization of relations with the United States at some time in the future. The Central Bank of Cuba does not now appear to be pursuing the Euro-ization option. A more advantageous objective would be to restore the Cuban peso as a strong and convertible currency. This would involve unifying the bifurcated economic structure, the dual monetary system and the dual exchange rate system. This would be difficult to implement. It appears that while the Cuban government is studying the matter, it does not yet appear to be moving in this direction in a concerted way. In time, however, an appropriate mix of exchange rate, monetary, fiscal, and income or wage and salary policies should be able to support a rehabilitation of the Cuban peso. This essay explores possible processes for strengthening the role of the peso in Cuba’s monetary system.

Suggested Citation

  • Archibald R.M. Ritter & Nicholas Rowe, 2000. "Cuba: from "Dollarization" to "Euro-ization" or "Peso Re-Consolidation"?," Carleton Economic Papers 00-13, Carleton University, Department of Economics, revised 2003.
  • Handle: RePEc:car:carecp:00-13

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Park, Soo-Bin, 1982. "Spot and forward rates in the Canadian treasury bill market," Journal of Financial Economics, Elsevier, vol. 10(1), pages 107-114, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Archibald R. M. Ritter, 2004. "Cuba's Underground Economy," Carleton Economic Papers 04-12, Carleton University, Department of Economics, revised 14 Jan 2005.
    2. Gonzalez Corzo, Mario, 2005. "Dolarización: Definición, costos y beneficios. El caso de Cuba
      [Dollarization: Definition, Costs and Benefits: The Case of Cuba]
      ," MPRA Paper 60547, University Library of Munich, Germany.

    More about this item


    Cuba; currency; exchange rate; dollar; dollarization; Euro; Euro; monetary system; socialist economy;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • P24 - Economic Systems - - Socialist Systems and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:car:carecp:00-13. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabrina Robineau). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.