He US dollars will be quoted at the meeting from today to 24 Cuban pesos at the official exchange rateso that this represented a change of 0.14% compared to the data of the previous session, when it was at 23.97 official pesos, it said Dow Jones.
Taking the last seven days into account, the US dollars Note slight changes; but there is still an increase in the last year 0.07%.
Relative to the past few days, this data reduces the negative trend of the last three days. As for the volatility of these seven days, it is significantly lower than that of last year, so we can say that it is in a period of greater stability recently.
The Ministry of Economy and Planning (MEP) of Cuba presented to the National Assembly of People’s Power the economic plan for 2025, a crucial year for addressing the current complex economic situation. The plan forecasts growth in gross domestic product (GDP) at constant prices around 1%, a passive value but which represents a step towards a gradual recovery of economic and social activity.
Despite moderate optimism, the MEP recognizes that 2025 will be marked by a complex scenario characterized by tensions and risks, mainly resulting from the tightening of the economic and financial blockade imposed by the United States.
The impact management plan focuses on the gradual implementation of measures that will enable the country to develop using its own strengths and available resources. Prioritized goals include the growth of ExportsImport substitution, advances in national food production and the strengthening of the socialist state corporation.
The 2025 Economic Plan also includes a total investment budget of more than 148 billion pesos, 63% of which will be allocated to primary economic sectors such as food production, the modernization of the steel and cement industries, and the development of renewable energy sources. The majority of investments will focus on continuity programs.
The Cuban peso is the legal currency in Cuba and is used by the majority of the population. It is divided into 100 units called centavos.
Since January 1, 2021, the convertible Cuban peso no longer exists as legal tender, as it has become 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 per convertible peso, but later it was devalued until it reached 26 Cuban pesos per convertible peso. The dollar is equal to 25 Cuban pesos and one convertible Cuban peso.
Only in April 2005 did the government agree to devalue the Cuban peso relative to the convertible peso, changing it to 25 Cuban pesos per convertible peso, and the latter remained at a 1:1 ratio to the dollar plus a 10 percent tax, meaning that for each dollar converted, 12% of its value was lost.
This was the case until January 1, 2021, when “Day Zero” of the monetary union was agreed upon. Although the abolition of the convertible peso was seen by many as a devaluation, for others it was simply a measure to catch up with the 24 Cuban pesos for every dollar.
Consequently, the demand for foreign currency also fueled the black market, where one dollar was sold for every 100 convertible Cuban pesos.
Currently there are coins in denominations of 1, 2, 5 and 20 centavos as well as 1, 3 and 5 pesos; while on bills there are 1, 3, 5, 10, 20, 50, 100, 200, 500 and 1000 pesos.
In economic terms, the Minister of Economy himself, Alejandro Gil Fernández, admitted that in 2022 the forecast values were not reached, since it was not possible to obtain the expected export revenues.
There was also a decline in tourism; as well as an increase in inflation of up to 40%, which translated into an increase in the prices of the shopping basket. As the minister made clear, inflation is a consequence of the lack of availability of foreign currencies.
On the other hand, the latest forecast from the Economic Commission for Latin America and the Caribbean (ECLAC) at the end of last year expected the rebound effect in the upswing to decline or end by 2023.
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