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WILL CUBA ISSUE HIGH DENOMINATION COINS?In light of rampant inflation, Cuba may be considering minting high-denomination coins. -Editor An official press proposal suggests that the cash shortage currently suffocating many banking operations in Cuba could be resolved by introducing high-denomination coins into circulation. A comment in the newspaper Victoria, from the Isle of Youth, even mentions the possibility of minting coins of 10,000 pesos or more, which would take up less space, last longer than bills, and be harder to counterfeit. But this "likely solution" to "the exasperating current situation" of cash shortages in banks, as the media acknowledges, overlooks the root of the problem: a collapsed financial system, lacking trust and liquidity. The reasoning behind the proposal is based on practicality: coins last longer, do not deteriorate like bills, and are less expensive in the long run. Furthermore, it is suggested that those who keep money at home—out of fear or distrust—would be more willing to exchange it if the physical volume of cash were smaller. In other words, if there were coins with a higher face value. The uncontrolled inflation that the population suffers increases the cost of basic necessities while the wages remain stagnant and the purchasing power of Cubans deteriorates, exhausted by queues, blackouts, hunger, and despair.
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Wayne Homren, Editor The Numismatic Bibliomania Society is a non-profit organization promoting numismatic literature. See our web site at coinbooks.org. To submit items for publication in The E-Sylum, write to the Editor at this address: whomren@gmail.com To subscribe go to: https://my.binhost.com/lists/listinfo/esylum All Rights Reserved. NBS Home Page Contact the NBS webmaster 
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