The Battle in Cuba for Foreign Currency

By Xel2 (El Toque)

HAVANA TIMES – We woke Sunday and the value of the US dollar and MLC (on magnetic cards) amounts to 140 Cuban pesos (CUP), another clear example of how speculative the Cuban economy has become.

When on August 3, 2022, Finance Minister Alejandro Gil announced that the State would buy USD at 120 CUP (up from 24 x 1), several economists and citizens foresaw the economic debacle that would ensue; but few imagined such a resounding and rapid rise in the exchange rate on the informal market.

Today, less than 20 days later, those who earn their salaries in pesos have seen their purchasing power further reduced, since the very few products offered by the State are in the stores in MLC (with USD prices). And they must buy the MLC at 140!  Plus they must skirt the possible punishment for the sale and purchase of foreign currency in the informal market, as warned on same Round Table show on August 3.

Around here we continue to use our art to talk more about the immediate reality of our country.

Have a good Sunday.

Wimar Verdecia Fuentes

Hurry, grab them Motica, they are making off with pensions! The informal exchange market.
Hey George, how much are you going for?
The Central Bank of Cuba
I buy Euro’s and USD privately. Cuba advances, and that hurts (the enemy)!

Lea más desde Cuba aquí en Havana Times

One thought on “The Battle in Cuba for Foreign Currency

  • This is a surprise only to true socialists who think that printing money creates wealth. In fact, it is very simple. Creation of products (work) creates wealth. No production (as in Cuba), means no wealth.

    The classic definition of inflation applies to the situation in Cuba…..’more money chasing fewer goods”. Until Cuba figures out a way to be productive in an international market place, inflation will rage, and Cubans will suffer.

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