An additional element stresses the Country Email List effectiveness of the system: the partial dollarization of the Cuban economy. Although as of January 1, two currencies will stop circulating in Cuba, true monetary unification will not have been achieved Country Email List as long as the CUP does not fully fulfill the functions of money in the domestic economy. A part of the consumer goods demanded by the population will continue to expand in the network of stores Country Email List in freely convertible currency.
For the rest, it has been recognized that there is Country Email List no availability of foreign currency in the country to sell to the population, which means that an informal foreign exchange market will continue to exist. The exchange rate of 24 CUP per dollar Country Email List does not impact the informal exchange rate as it operates in different circuits that are not interconnected with each other. Returning to the idea that one of the purposes is to stimulate formal employment, it should be considered that the effects of the system on real wages are yet to be verified and Country Email List that the fact that part of the consumer goods are sold in freely convertible currency is forces contrary to the desired objective.
Another unwanted effect of devaluation is the loss Country Email List of value of personal savings accumulated over years. How to compensate for these losses, at least in the medium term, is a question that must be present in the current debate from Country Email List the design of policies. Furthermore, people will try to protect themselves from this phenomenon by buying foreign currency in the informal market, which will continue to push up the Country Email List informal exchange rate as long as exchange controls exist.