The euro is listed at the beginning of today at 24.80 Cuban pesos at the official exchange ratewhich meant an increase of 1.07% compared to 24.53 Cuban pesos at the official exchange rate of the previous session.
If we consider the data of the last week, the euro scores a decrease of 0.03% and in year-on-year terms, it still accumulates a drop in 8.84%.
In relation to past days, it turns around the data from the previous day where it experienced a decrease of 0.29%, recently showing a lack of continuity in the results. In reference to the volatility of the last week, it presents a behavior that is notably lower than the volatility reflected in the data of the last year, presenting itself as a value with less changes than usual in recent dates.
A suffocated Cuban peso
The Cuban peso is the currency It is legal tender in Cuba and is used by the majority of the population, which 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 Cuban convertible peso.
It was not until April 2005 when the government agreed to the devaluation of the cuban peso with respect to the convertible when passing 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, with this it is had that for each dollar changed, 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 only 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 cents and 1, 3 and 5 pesos; while in bills there are 1, 3, 5, 10, 20, 50, 100, 200, 500 and 1000 pesos.
Economically, the coronavirus pandemic It has hit the nation as well as many others globally, therefore, the government expects that this 2022 the country will have an increase in its Gross Domestic Product of only 4 percent, after an 11% drop registered in 2020 from which in 2021 it could not fully recover, as it was estimated at 2 percent.
It should be noted that Cuba is not part of international organizations such as the World Bank or the International Monetary Fund (IMF), so the estimates of economic growth are made by the State itself.
Other factors such as inflation and the devaluation of the peso skyrocketed after the start of the unification of its national currency. Added to this is the non-payment to international creditors and the pressure from the government of United States with the economic blockade that, according to the Cuban administration, these measures have caused the loss of 9.15 million dollars.
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