Cuba’s National Currency Continues to Devalue Against Euro and Dollar
The economic situation in Cuba is becoming more dire as the national currency continues to devalue against the rise of the euro and the dollar in the informal market. The minimum wage on the island is increasingly inadequate, with the purchasing power diminishing to the point where it can barely cover the cost of a package of detergent.
According to the daily rate of El Toque, the European currency has reached a new historical record of 340 Cuban pesos per unit. This has had a significant impact on the minimum wage in Cuba, which currently stands at 2100 CUP, equivalent to €6.18. With this amount, individuals can only afford basic items such as sunflower oil, picadillo, bacon, or detergent in Cuban stores that accept MLC.
An analysis by economist Pedro Monreal reveals that even the highest-paid workers in Cuba are struggling to meet their basic needs, with the average salary falling short by 3% to cover the cost of essential goods and services. The economic crisis is further compounded by the government’s inability to meet the high demand for foreign currency among the population.
The only legal way for Cubans to acquire foreign currency is through CADECA offices, where individuals can exchange up to 100 US dollars or the equivalent in MLC with their identity card. However, the process requires making appointments through the Ticket application, which can take months, limiting access to MLC and forcing many to resort to the informal market.
The devaluation of the Cuban peso against the euro and the dollar has created a challenging environment for the island’s residents, where the minimum wage is no longer sufficient to cover basic needs. As the economic crisis deepens, many Cubans are struggling to make ends meet, highlighting the urgent need for sustainable solutions to address the financial challenges facing the country.