Cuba scraps two-currency system

Cuba has decided to scrap its two-currency system.

The country has used two denominations since 1994, with the convertible peso (CUC) pegged to the US dollar and reserved for those in the tourism and foreign trade sectors. Now, that currency will be amalgamated with the cheaper CUP currency, reports the BBC.

The system was originally set up to protect the delicate Cuban economy following the collapse of the Soviet Union. It led to an equally divided two-tier class system on the island, a place where property ownership was banned until 2011, when laws put an end to a system of house-swapping and under the table black market payments.

The decision to unify the two currencies is an equally significant step in the ongoing transformation of the Cuban economy.