Moody's: Double currency is the biggest macroeconomic challenge for Cuba
Moody's Investors Service pointed out the dual monetary system in Cuba, with one convertible peso (CUC) equivalent to one dollar that coexists with the Cuban peso (CUP) or "national currency" - as one of the major sources of inefficiency and distortion of prices.
In a note published on Tuesday, the renowned financial risk rating agency explained that the dual currency system that governs the island "distorts relative prices and is the most important macroeconomic challenge for Cuba".
Jaime Reuschee, Moody's senior analyst and vice president, said that although it is a symbolism, removing Cuba from the list of states sponsors of terrorism "reduces the stigma for financial organizations which are not American to provide financial flow and International banking services to Cuba, if regulations are more relaxed".
"It also increases the chances for Cuba to receive funding from international organizations such as the Andean Development Corporation (CAF by its Spanish acronym), among others." The agency applies to Cuba a Caa2 credit rating with a stable outlook.