What might be the consequence of switching to a single Cuban currency?
If the Cuban government were to change the value of the CUP to approach that of the convertible peso by making one CUC worth eight CUP, thereby increasing all state salaries dramatically, Carmelo Mesa-Lago, an expert on the Cuban economy and a University of Pittsburgh professor, predicts that there would be a nationwide shopping spree for previously prohibited consumer goods that, although now legal to own, are outside the budget of a large majority of Cubans. The resulting draining of supplies would be even more disheartening for those who would just recently have acquired the money to buy goods, but would then have no more goods to buy.[2] The Cuban government would also have to deal with a three-fold increase in all state wages, which are paid to the majority of its citizens. The Cuban leadership is struggling to improve domestic productivity in all sectors, which has long been a concern, and claims that economic conditions will only pick up once this happens. Without increased prod
