In September, the greenback equaled the historical rate of 150 pesos registered during the crisis economical which resulted from the fall of the USSRin 1991. El Toque stressed this Monday that “a year ago this value was 65 CUP for every dollar.”
“In my opinion it has not reached the top. The value will continue to grow as long as the migratory bleeding continuesCuban economist Mauricio de Miranda, an academic at Colombia’s Javeriana University, told AFP.
In the midst of the worst economic crisis in Cuba in almost 30 years, a large number of Cubans seek to emigrate, especially through Central Americato get to state Joined. The trigger for this new wave of migrants was the elimination, in November, of the visa for Cubans traveling to Nicaragua.
But fly to that Central American country and making the continental run to the US border can cost upwards of $12,000which has triggered the value of that currency on the black market by Greater demand.
According to the United States Customs and Border Protection (CBP), a record of almost 198,000 Cubans entered irregularly to that country between October and August.
“As observed in the trends, the dollar in cash slightly exceeds the bank dollar in deposits in freely convertible currency (MLC, used to buy in stores in foreign currency), and this shows that the greatest demand is generated to emigrate” DeMiranda adds.
Speculation, another cause
However, Cuban economist Pavel Vidal, from the same Colombian university, warns that “in recent weeks what seems to have happened is a speculative phenomenon that promotes the purchase of foreign currency ‘at any price,’ because the inflation and the devaluation of the Cuban peso there seems to be no end.”
Trying to capture foreign exchange and stop the depreciation of the Cuban currency, the Central Bank began in August the purchase and sale of dollars and euros in state exchange houses at a fixed parity of 120 pesos, the same price that was then in force in the informal market. But this sale is limited to $100 a day and availability is not always available.
In Cuba, the value of the US dollar began to skyrocket on the black market starting in January 2021, when the government applied a Financial reform and set its price at 24 pesos per unit.
Source: Ambito
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