Cuba lowers prices for some basic food products as part of currency reform

Cuba's government said Monday it would lower the prices for some basic food products as part of its plan to gradually phase out its dual-currency system.

The Ministry of Finance and Prices announced that the sale prices in Cuban Convertible Pesos (CUC) for some food products including some dairy products, rice, beans, meat and vegetables will be slashed by between 9 and 30 percent, starting Tuesday.

The announcement is expected to help support the real value of the Cuban peso (CUP), the national currency of Cuba.

Under the dual-currency system in Cuba, the cheaper Cuban peso (CUP) circulates alongside the more valuable Cuban Convertible Peso (CUC), with most Cubans earning CUP, while many goods sold in stores are priced in CUC.

The government said the latest move shows the political will of the Cuban Communist Party and the government to benefit the people.

A week ago, the Cuban government announced a similar move to lower the prices in CUC for several food items, including chicken and cooking oil, by up to 30 percent.

The complicated dual-currency system has created many challenges. The CUP has been the official national currency since 1915, while the CUC was established by the government in 1994 as a substitute for the strong foreign currencies circulating on the island during a crisis. Endi