Dual economy of Cuba
Differing policies for locals and foreigners
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 (CUC) with the other system based on the Cuban peso (CUP). Different institutions and businesses operated on only one side of the currency divide. The Cuban peso, used mostly by Cuban nationals, could not buy imported goods. The goal of the dual economy was to create one economic sphere designed to use foreign investment, while keeping it separate from the other economic sphere of domestic activities.
The dual economy involved various policies that divided Cuban nationals and foreigners. These systems dividing tourist facilities, currencies, and healthcare, have been informally termed "tourism apartheid,"dollar apartheid", and "medical apartheid".
Since 2020 Cuba began to suffer under an economic crisis that hadn't been seen since the Special Period. To try to revitalize the economy, the CUC currency was eliminated in 2021 and instead the Cuban peso is directly convertible to US dollars.
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