According to him, the new regime will assume more flexibility in the exchange rate, by establishing that the rates must vary when “the conditions of supply and demand of foreign currencies are modified.”

“It is a complex process due to the participation of the state sector, non-state sector and the population, with multiple exchange rates,” Marrero said when announcing how the Government Projection program is making progress to correct distortions and boost the economy.

The head of Government revealed the modification during the first day of the 4th Session of the 10th Legislature of the National People’s Power Assembly.

According to Marrero, this is one of the government’s measures to advance Cuba’s macroeconomic stabilization.

Although he did not specify the date of application, nor did he noted whether there will be caps on the exchange rate of the peso against the US dollar or any other currency, he stressed that in this way, the state banking system will be more competitive and attractive for citizens.

He commented that this measure might increase the collection of foreign currency and decrease illegal and irregular exchange, which is another way of protecting the Cubans’ rights.

The government’s aspiration, according to the prime minister, is that people wanted to sell their foreign currency in Cuban banks and, at the same time, these institutions could participate in the exchange process with more capacity.

Marrero insisted that despite these measures and the operation under partial dollarization schemes in various sectors, the government’s policy is to advance the de-dollarization of the economy.

jg/arc/raj