Havana , Cuba ( CNN ) -- The Cuban government announced Tuesday it plans to end the country 's dual-currency system . Presently , most Cubans are paid in the Cuban peso , or CUP , while the vast majority of goods on the island are available only with the hard currency convertible peso , or CUC . Convertible pesos are pegged to the U.S. dollar , while the Cuban pesos are worth only about 4 cents each . Neither peso is accepted as currency outside of Cuba , where , according to government statistics , most Cubans make about $ 20 a month from their official salaries . The dual system came into being after the collapse of the Soviet Union , when Cuba introduced the U.S. dollar as the country 's second currency . In 2004 , the government replaced the dollar with the convertible peso . The dual-currency system is unpopular with many Cubans , who complain that the Cuban pesos they received their salaries in are not accepted in stores that carry sought-after imported goods . The announcement in the Cuban Communist Party newspaper Granma said the change is to be a gradual process , but gave no timetable . `` The currency unification is n't a measure that will resolve on its own the current problems of the economy . But its adoption is vital to restoring value to the Cuban peso , '' the announcement in Granma read . For months , Cuban officials have said ending the two-currency system was a priority but the move would have a major impact on the government 's gradual attempts to move from a centralized , communist-style economy . The announcement Tuesday said the Cuban central bank will continue to back both currencies and give Cubans time to convert their savings .
Cuba has two currencies : the Cuban USD , USD , and the hard currency convertible peso , CUC . Most Cubans are paid in the USD ; purchases of most goods require the CUC . The change is to be a gradual process , the Cuban Communist Party newspaper Granma says .