The value of the dollar on the Cuban black market soars a week after the start of the purchase by the State

The american dollar achieved the value of 125 Cuban pesos on the black market just a week after the Island's Government start buying the currency at a price of 110.40 pesos in the Exchange Houses, which indicates that the population continues to favor informal ways to carry out these transactions.

The value of the dollar, published by the independent media The Touch based on the calculation of the average of the numbers written in ads for buying and selling currencies in social network groups and classifieds sitescontinues to grow and break records since inflation was released on the Island with the opening of stores in Freely Convertible Currency (MLC).

According to the independent media, also the euro, which reached 129 Cuban pesos on the informal market this Thursdayexceeds the purchase rate established by the authorities, which is just over 119 Cuban pesos.

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

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

Another measure that affected the value of the Cuban peso was the ban on the sale of dollars at airportsthe only place where the State offered this service to the official exchange (1x24) until the middle of last year for those traveling abroad.

However, Cuban authorities announced last week that they would begin buying them all the foreign currenciesincluding dollars in cash, at a higher exchange rate than the one initially established. For the sale, the Cubans still have to wait.

"We will venture into the sale of currency to the population when there are purchase and sale operations"said last week at the Round Table the Minister of Economy of Cuba, Alejandro Gil.

At the moment, both individuals and workers and private entities, as well as foreigners and Cubans resident or not on the island, can sell currency.

At the beginning of this year the Bloomberg companyspecialized 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 chart of the 15 most depreciated currencies on the planet, the Cuban has a 95.83% depreciation.

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

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

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