Cuba will unify its two currencies, the Cuban peso and convertible peso, as of January 1, ending a unique system that has existed for nearly three decades, President Miguel Diaz-Canel said Thursday.

"We consider the conditions met to announce the start of this reform beginning January 1, 2021, with a single exchange rate of 24 Cuban pesos for one dollar," Diaz-Canel said on television, alongside Raul Castro, the country's former president and Communist Party leader.

The reform, which had been announced years ago and repeatedly postponed, is intended to make the Cuban economy more accessible to foreign investors.

The move "will place the country in a better condition for needed transformations by updating our economic model," he added.

The Communist leader acknowledged that was "one of the most complex tasks" facing the country, as it is buffeted by headwinds from a strengthening US embargo, the Covid-19 pandemic, and a global economic crisis.

The move, postponed for years as authorities waited for the best time to make the change, comes as the Cuban economy is expected to contract by 8 percent this year, according to the UN's Economic Commission for Latin America.

The reform will eliminate the &nbsp;convertible peso, or CUC, created in 1994 and linked to the dollar.&nbsp;

Only the Cuban peso, or CUP, will remain, which is worth 24 times less.&nbsp;

The currency reform comes after the island reintroduced the dollar in October 2019, with appliance and food stores which only accept that currency.

The value of the CUP could suffer against this strong currency.

Additionally, state enterprises, which receive a reduced rate of one CUP to the dollar, will see production costs rise, leading to price hikes.

The government has already announced significant wage increases to offset expected high inflation.

Cuba will unify its two currencies, the Cuban peso and convertible peso, as of January 1, ending a unique system that has existed for nearly three decades, President Miguel Diaz-Canel said Thursday.

Cuba will unify its two currencies, the Cuban peso and convertible peso, as of January 1, ending a unique system that has existed for nearly three decades, President Miguel Diaz-Canel said Thursday. "We consider the conditions met to announce the start of this reform beginning January 1, 2021, with a single exchange rate of 24 Cuban pesos for one dollar," Diaz-Canel said on television, alongside Raul Castro, the country's former president and Communist Party leader. The reform, which had been announced years ago and repeatedly postponed, is intended to make the Cuban economy more accessible to foreign investors. The move "will place the country in a better condition for needed transformations by updating our economic model," he added. The Communist leader acknowledged that was "one of the most complex tasks" facing the country, as it is buffeted by headwinds from a strengthening US embargo, the Covid-19 pandemic, and a global economic crisis. The move, postponed for years as authorities waited for the best time to make the change, comes as the Cuban economy is expected to contract by 8 percent this year, according to the UN's Economic Commission for Latin America. The reform will eliminate the convertible peso, or CUC, created in 1994 and linked to the dollar. Only the Cuban peso, or CUP, will remain, which is worth 24 times less. The currency reform comes after the island reintroduced the dollar in October 2019, with appliance and food stores which only accept that currency. The value of the CUP could suffer against this strong currency. Additionally, state enterprises, which receive a reduced rate of one CUP to the dollar, will see production costs rise, leading to price hikes. The government has already announced significant wage increases to offset expected high inflation.

Cuba to unify its two currencies as of January 1

Japanese Finance Minister Taro Aso said on Tuesday that a currency swap agreement it signed with India was intended to function as a safety net in case of a financial crisis.

Japan&nbsp;and India signed a US $75 billion bilateral currency swap agreement on Monday during Indian Prime Minister Narendra Modi's visit to Tokyo.

The agreement will further strengthen and widen the depth and diversity of economic cooperation between the two countries.

Speaking to reporters, Aso also said the US $30 billion currency swap deal&nbsp;Japan&nbsp;signed with China last week would support&nbsp;Japanese companies and banks operating in China if they had trouble exchanging yen for yuan.

“India and Japan agreed to enter into a bilateral swap arrangement of $75 billion. This swap arrangement would be 50% higher than our last swap agreement,” finance minister Arun Jaitley tweeted.&nbsp;

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India and Japan agreed to enter into a bilateral swap arrangement of 75 billion dollars. This Swap arrangement would be 50% higher than our last Swap agreement. This bilateral swap reflects depth of our deeper economic relationship.
— Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/1056861791198867456?ref_src=twsrc%5Etfw">October 29, 2018</a></blockquote>
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Prime Minister Narendra Modi, who is visiting Japan, and his Japanese counterpart Shinzo Abe held delegation-level talks during which the two leaders discussed a range of bilateral, regional and global issues including the situation in the Indo-Pacific region.

Japanese Finance Minister Taro Aso said on Tuesday that a currency swap agreement it signed with India was intended to function as a safety net in case of a financial crisis.

Japanese Finance Minister Taro Aso said on Tuesday that a currency swap agreement it signed with India was intended to function as a safety net in case of a financial crisis. Japan and India signed a US $75 billion bilateral currency swap agreement on Monday during Indian Prime Minister Narendra Modi's visit to Tokyo. The agreement will further strengthen and widen the depth and diversity of economic cooperation between the two countries. Speaking to reporters, Aso also said the US $30 billion currency swap deal Japan signed with China last week would support Japanese companies and banks operating in China if they had trouble exchanging yen for yuan. “India and Japan agreed to enter into a bilateral swap arrangement of $75 billion. This swap arrangement would be 50% higher than our last swap agreement,” finance minister Arun Jaitley tweeted. India and Japan agreed to enter into a bilateral swap arrangement of 75 billion dollars. This Swap arrangement would be 50% higher than our last Swap agreement. This bilateral swap reflects depth of our deeper economic relationship. — Arun Jaitley (@arunjaitley) October 29, 2018 × Prime Minister Narendra Modi, who is visiting Japan, and his Japanese counterpart Shinzo Abe held delegation-level talks during which the two leaders discussed a range of bilateral, regional and global issues including the situation in the Indo-Pacific region.

India, Japan sign $75 billion currency swap agreement

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Cuba to unify its two currencies as of January 1

India, Japan sign $75 billion currency swap agreement