Since its "depenalization" in 1993, the U.S. dollar has become possibly a more significant component of Cuba's money supply than the old peso. What are the alternatives? The euro seems inappropraite, given the inevitability of eventual normalization of relations with the United States. More advantageous would be to restore the Cuban peso, though this would involve unifying the bifurcated economic structure and the dual monetary and exchange rate systems. The Cuban government has yet to announce its plans. This study argues that an appropriate mix of exchange rate, monetary, fiscal, and income or wage and salary policies should support a rehabilitation of the Cuban peso.

Latin American Politics and Society
Department of Economics

Ritter, A.R.M, & Rowe, N. (2002). Cuba: From "dollarization" to "euroization" or "peso reconsolidation"?. Latin American Politics and Society, 44(2), 99–123.