Opening value of the dollar in Cuba this June 19 from USD to CUP

Opening value of the dollar in Cuba this June 19 from USD to CUP
Opening value of the dollar in Cuba this June 19 from USD to CUP

The price of the dollar on the streets of Cuna far exceeds the official one. (Infobae)

After the stock market opening American dollar It is negotiated at the beginning of the day today 24 Cuban pesos at the official exchange rateso that it implied a change of 0.14% when compared to the 23.97 official pesos of the previous day.

In relation to the profitability of the last seven days, the American dollar marks a drop in 0.1%%; Despite this, in year-on-year terms it still accumulates an increase in 0.07%.

In relation to the changes of this day with respect to past dates, it chains two successive sessions in positive digits. The volatility referring to the last week presents a balance that is manifestly lower than the volatility shown by the data for the last year, so its price is presenting less alterations than expected lately.

At the end of 2023 Cuba announced a series of measures that will be in force in 2024. Among the most important are the increase in the prices of fuel and basic services, cuts in subsidies and restrictions for the private sector.

One of the measures that most affects the population is the 25% increase to the prices in homes that consume more electricity.

The forecasts of communist government of the island estimate that this year the economy will have a growth of 2 percent.

The Cuban peso is the currency Legal tender in Cuba and used by the majority of the population, it is divided into 100 units called centavos.

As of January 1, 2021, the Cuban convertible peso as legal tender, since it was the most accepted in the payment of obligations and although it still has legal value, it is not accepted in the payment of products and services.

In 2002 the exchange rate was 21 Cuban pesos for each convertible peso, but later it was devalued until it reached 26 Cuban pesos per convertible peso. As for the dollar, it is equivalent to 25 Cuban pesos and one convertible Cuban peso.

It was not until April 2005 when The government agreed to the devaluation of the Cuban peso with respect to the convertible by changing it to 25 Cuban pesos per convertible peso and the latter remained at parity of 1:1 with respect to the dollar plus a 10 percent tax, this means that for each dollar exchanged, 12% of its value.

That’s how it was until January 1, 2021 when “Day Zero” was agreed of monetary unification, although for many the extinction of the convertible peso was seen as a devaluation, for others it was just a measure to catch up with the 24 Cuban pesos for each dollar.

Consequently, the demand for foreign currency also pushed the black exchange market in which one dollar was sold for every 100 convertible Cuban pesos.

Currently there are coins of 1, 2, 5 and 20 centavos and 1, 3 and 5 pesos; while in bills there are 1, 3, 5, 10, 20, 50, 100, 200, 500 and 1000 pesos.

On the economic front, the Minister of Economy himself, Alejandro Gil Fernández, acknowledged that in 2022 the projected levels were not reached due to the impossibility of achieving the expected income from exports.

Likewise, there was a decrease in tourism; as well as an increase in inflation of up to 40%, which had repercussions in an increase in the prices of the basket of goods and services. As the minister clarified, inflation is an effect of the lack of availability of foreign currency.

On the other hand, according to the latest forecasts made by the Economic Commission for Latin America and the Caribbean (ECLAC), after there was progress in 2022 following the crisis due to the coronavirus pandemic, By 2023, a decline or exhaustion of the rebound effect was expected in recovery.

 
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