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About: Dual economy of Cuba     Goto   Sponge   NotDistinct   Permalink

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The dual economy of Cuba was developed after the dissolution of the Soviet Union, which caused major economic changes on the island. Tourism was regarded as the only stable sector of the Cuban economy and became the subject of policy changes to enhance its development. Cuba legalized the use of the US Dollar and created a dual currency system, one based on the dollar and the Cuban convertible peso with the other system based on the Cuban peso. Different institutions and businesses operated only one side of the currency divide. The Cuban peso, used mostly by Cuban nationals, cannot buy imported goods. The goal of the dual economy was to create one economic sphere designed to utilize foreign investment, while keeping it separate from the other economic sphere of domestic activities.