Cuban Government declared on June 28 that they have decided to increase state salaries as an important part of larger economic reforms. However, no added details have been said other than increasing salaries of workers. Salary increase has always been viewed as primary steps in unifying Cuba’s special dual-currency system. This sudden step might be a risky one with the ongoing economic crisis aggravated by stricter sanctions by U.S.
For the past quarter century, Cubans have been using one peso which is approximately four cents and other one valued nearly a dollar. The more valued peso was initiated as a substitute for dollars traded in black market during the 1990 post-Soviet financial crisis. With time, the communist government has used both the currencies. Goods and services meant for basic rights have been priced extremely low. Prices of luxury items have been kept very high. This kind of deformed currency system has curbed economic growth.
Cuban officials informed Diaz-Canel presiding over a meeting that was held on June 21st of the Council of Ministers. However, the motto of the meeting was unknown. Due to the sudden collapse of Venezuelan economy, there was cut in aid for Cuba as well. Besides, the already declining economy of Cuba went worse with numerous measures by Trump administration that reduced the funding to island’s government. They affirmed of economic measures to come out of the present condition and also suggested increase in state sector salaries. The President said that following the salary increase, several reforms would also be made.
The declaration said that least salary would be approximately $17 a month and the average salary would be $44 instead of $32. State pensions were already increased a little. In the declaration, there was frequent mention to the measures approved by Council of Ministers. It was also said that in future the Cuban population would get to know about the reforms in detail through different media.