{"id":256282,"date":"2022-08-09T16:23:17","date_gmt":"2022-08-09T20:23:17","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=256282"},"modified":"2022-08-09T16:23:17","modified_gmt":"2022-08-09T20:23:17","slug":"rate-of-120-and-fundamentals-of-economy","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/rate-of-120-and-fundamentals-of-economy\/","title":{"rendered":"Rate of 120 and \u201cfundamentals\u201d of economy"},"content":{"rendered":"

The Central Bank at last recognized the devaluation of the peso that had been occurring since 2020 in the Cuban informal market, but only for a segment of the economy. Thus, economic policy officially returns to multiple exchange rates, and abandons, for now, the unified official exchange rate of 24, which was one of the priority objectives of the so-called <\/span>\u201cmonetary reorganization\u201d<\/b><\/a> of 2021.<\/span><\/p>\n

The new official foreign exchange market will work with an exchange rate that will not be fixed, but rather will have a managed floatation. The state seeks to retake the monopoly of the foreign exchange market and remove informal exchange operators from the game.<\/span><\/p>\n

The most novel and positive thing is that private enterprises and cooperatives will be able to sell foreign currency at the new exchange rate, and that banks will accept and exchange physical dollars in these operations at 120, as well as foreign currency transfers. The latter unlocks one of the major impediments that <\/span>remittances<\/b><\/a>\u00a0had in order to reach Cuba through formal financial channels. Another favorable element could be associated with tourism, since foreign visitors will be able to formally exchange their currencies at a higher exchange rate.<\/span><\/p>\n

Remittances: when the dollar returns to the economy<\/a><\/p><\/blockquote>\n