Inflation in Cuba does not stop

Dollar Hits a Historic Record on the Informal Market

HAVANA, Aug. 14th The price of the dollar and the euro reached 130 Cuban pesos this Saturday in the island’s informal market, while the Freely Convertible Currency (MLC) reached 131, according to the rate published daily by the independent media outlet El Toque.

Despite the start of the purchase of foreign currency announced by the Cuban government at the beginning of August, the price of currencies has not stopped climbing on the island’s black market, which continues to be the most used by citizens to access them.

The State, which currently buys the dollar at a price of 110.40 Cuban pesos in the Exchange Houses and the euro at a little more than 119 pesos, has not managed to contain inflation and announced that the beginning of the sale of foreign currency to the population must still wait.

The value of the coins, published daily by the independent media outlet El Toque based on the calculation of the median of the numbers written in advertisements for the purchase and sale of currencies in social network groups and classified sites, corresponds to several of the offers on sites such as the Revolico portal.

In a text published at the end of June the economic analyst Rafaela Cruz predicted that, if the situation on the Island continues as it is today, in a year the price of the dollar could reach 200 Cuban pesos.

Inflation, marked by the need for MLC or foreign exchange to obtain everything from plane tickets and household appliances to basic necessities such as food, was aggravated by the economic reforms applied at the beginning of 2021, which notably limited the purchasing power of consumers. Cubans.

Another measure that affected the value of the Cuban peso was the prohibition of the sale of dollars at airports, the only place where the State offered this service at the official exchange rate (1×24) until the middle of last year for those traveling abroad.

At the beginning of this year, the Bloomberg company, which specialized in financial matters, described the Cuban peso as the most depreciated currency in the world in the period between January 1, 2021, and January 5, 2022.

According to the comparative graph of the 15 most depreciated currencies on the planet, the Cuban currency has a 95.83% depreciation.

The period analyzed by Bloomberg is precisely that of the application in Cuba of the Ordering Task, one of whose purposes, according to the authorities, would be to revalue the role of the Cuban peso.

However, the maelstrom of economic measures that involved monetary and exchange rate unification, the increase in the wage bill, the fiscal deficit, and planned inflation, among others, was an announced economic failure that instead of improving the lives of Cubans has plunged them into worse hardships.