Giovanni Russo According to a recent report, the parallel market exchange rate of the Cuban peso against the U.S. dollar has plummeted to CUP200 per dollar, marking a level last observed in October 2022. Pavel Vidal, a former economist at the Cuban central bank, emphasized that this depreciation has led to the “impoverishment of the economy and families when considering dollar values.”
Peso Declines Over 20% in 2023
El Toque’s data reveals that the Cuban peso’s exchange rate on the parallel market has recently reached its all-time low of 200 per dollar, a figure not seen since October 2022. This latest plunge signifies that the currency, officially fixed at CUP25:USD1, has devalued by more than 20% in 2023 alone and over 50% in less than a year.
The report highlights that the peso’s significant drop further diminishes the purchasing power of Cuban salaries, which seldom exceed $25 or 5,000 pesos per month. This accelerated depreciation coincides with the advocacy by Cuba’s leader, Miguel Diaz-Canel, and other world leaders for an alternative to the U.S. dollar.
Pavel Vidal, a former economist at the Cuban central bank, commented on the potential impact of the ongoing currency challenges on the population, stating that the peso’s depreciation has negatively affected many residents.
“In dollar terms, the exchange rate reveals the economic hardship faced by both the economy and families,” said Vidal, currently a tutor at Colombia’s Pontificia Universidad Javeriana Cali.
While Cuba reportedly implemented some market reforms, Vidal argues that these measures have failed to stimulate domestic production or control inflation.
However, Cuban officials, including President Diaz-Canel, consistently attribute the country’s economic difficulties to the sanctions imposed by the U.S. in the 1960s.
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Table of Contents
Frequently Asked Questions (FAQs) about Cuban peso, parallel market, depreciation, economic challenges
What is the current parallel market rate of the Cuban peso?
According to the report, the current parallel market rate of the Cuban peso is CUP200 per U.S. dollar.
When was the last time the Cuban peso’s parallel market rate was at this level?
The parallel market rate of the Cuban peso last reached CUP200 per dollar in October 2022.
How much has the Cuban peso depreciated in 2023?
The Cuban peso has depreciated by over 20% in 2023 alone.
How much has the Cuban peso depreciated in less than a year?
In under 12 months, the Cuban peso has depreciated by more than 50%.
What impact does the peso’s depreciation have on the purchasing power of Cuban salaries?
The peso’s depreciation erodes the purchasing power of Cuban salaries, which often do not exceed the equivalent of $25 or 5,000 pesos per month.
What does the former economist, Pavel Vidal, say about the peso’s depreciation?
Pavel Vidal argues that the peso’s depreciation has led to the impoverishment of the economy and families in dollar terms.
Have market reforms in Cuba been successful in boosting domestic production?
According to Pavel Vidal, the market reforms implemented in Cuba have failed to stimulate domestic production.
What is the cause of Cuba’s economic woes according to Cuban officials?
Cuban officials, including President Miguel Diaz-Canel, consistently attribute the country’s economic difficulties to the sanctions imposed by the U.S. in the 1960s.
More about Cuban peso, parallel market, depreciation, economic challenges
- Cuban Peso Plunges to Lowest Level Since Oct. 2022
- Data on Cuban Peso Exchange Rate
- Pavel Vidal’s Insights on Peso Depreciation
- Impact of Peso’s Depreciation on Cuban Salaries
- Analysis of Market Reforms in Cuba
- Cuban Officials’ Perspective on Economic Woes
3 comments
cuban govt needs 2 do somethin bout dis. market reforms ain’t workin! inflation outta control. #economicwoes
oh my god cuban peso droppin like crazy. ppl be sufferin cuz of it. economy in bad shape 🙁
blame it on those US sanctions! cuba’s been sufferin 4 so long cuz of them. not fair! #cubaneconomy