{"id":254011,"date":"2022-06-10T17:40:58","date_gmt":"2022-06-10T21:40:58","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=254011"},"modified":"2022-06-10T17:40:58","modified_gmt":"2022-06-10T21:40:58","slug":"economists-revaluation-of-cuban-peso-does-not-necessarily-anticipate-improvement-of-economy","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/economists-revaluation-of-cuban-peso-does-not-necessarily-anticipate-improvement-of-economy\/","title":{"rendered":"Economists: Revaluation of Cuban peso does not necessarily anticipate improvement of economy"},"content":{"rendered":"

For more than two weeks in a row,\u00a0 this Wednesday the Cuban peso has gone up in the informal market after <\/span>Washington\u2019s announcement<\/b><\/a> that it would eliminate the limits on remittances, something unprecedented in 18 months but that does not necessarily anticipate a recovery in <\/span>the country\u2019s economy<\/b><\/a>, warned three economists to EFE news agency.<\/span><\/p>\n

Almost like a mirror, the exchange rate of the Cuban peso (CUP) with the dollar that is bought in the street \u2015 the official rate is 24 to 1 \u2015 importantly descended 48 hours after the May 16 announcement by the administration of Joe Biden.<\/span><\/p>\n

This change in the graph also coincided with the <\/span>May 14 announcement by Minister of Economy and Planning Alejandro Gil Fern\u00e1ndez that the Cuban State would sell dollars, or freely convertible currency (FCC) above the official exchange to \u201cnational and non-state national suppliers\u201d with certain conditions.<\/span><\/p>\n

The purchase went from the 115 CUP per dollar on May 17 to 95 on May 23, an equivalence that was not seen since January, according to data calculated by the independent media <\/span>El Toque<\/span><\/i>, which prepares a daily rate taken as reference by experts.<\/span><\/p>\n

This Wednesday the exchange rate for a dollar was 98 CUP in the informal market, with a more stable behavior, according to this indicator made with the average of hundreds of foreign currency buying and selling ads on Cuban digital platforms.<\/span><\/p>\n

The trend is significant. The dollar had been progressively appreciated since its official exchange was unified as 24 to 1 in January 2021, as part of a broad and controversial economic reform called <\/span>Reorganization Task<\/b><\/a>.<\/span><\/p>\n

Cuban economist Pedro Monreal recently calculated that the balance rate of the exchange rate \u2015 an estimate based on macroeconomic variables \u2015 would be this year in the 82 CUP per dollar, as <\/span>he explained<\/b><\/a> in his blog <\/span>El Estado como tal<\/span><\/i>. The background is the persistent crisis that affects Cuba, the result of the combination of pandemic, U.S. sanctions and failures in national economic policy.<\/span><\/p>\n

\n

Tasa de \u201cequilibrio\u201d del peso\u00a0cubano estimada en 82 CUP por USD para\u00a02022. https:\/\/t.co\/2vwQ9fvbCD<\/a><\/p>\n

— Pedro Monreal (@pmmonreal) June 1, 2022<\/a><\/p><\/blockquote>\n