The US dollar is close to doubling its value in the Cuban informal market in one year.
On April 14, 2023, Cuba woke up to the news that the informal rate of the US dollar had risen to 185 Cuban pesos.
Exactly one year later, the economic situation of the island reflects an even more complex scenario, with the reference rate of the medium El Toque placing the USD at 350 CUP.
This escalation not only affects the dollar, but is also observed in other currencies such as the euro and the Freely Convertible Currency (MLC), which They reach values of 355.00 CUP and 285.00 CUP respectively.
Without a doubt, this phenomenon has had a direct impact on the purchasing power of Cubans, where The minimum wage (2,100 pesos, less than 6 USD) is no longer enough to cover basic needslike a bag of powdered milk sold in official government dollar stores.
Cuban government: official rate
The response of the leaders to this situation has been cautious and a new official rate has not yet been finalized.
During a recent balance meeting of the Central Bank of Cuba, Prime Minister Manuel Marrero Cruz highlighted the importance of facing the challenges presented by the country’s monetary and exchange rate policy. To do this, he asked that new rate proposals sooner.
He also expressed his concern about the impact that the illegal exchange rate has on the population, influencing prices and inflation. “The illegal exchange rate also generates greater concern in the population, mainly because of how this type of exchange influences the structuring of prices,” he said.
For his part, Cuban President Miguel Díaz-Canel sent a recent message to the population: “The fundamental issue is food. Until we produce the food we need, prices will not drop. There are no miracles here. And there is enough land here to produce food,” he said.
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