From The Rio Times · Lachlan Williams · · 1m 40s
Cuba Dollar Rate Hits Record 800 Pesos
Cuba's informal dollar rate hits record 800 pesos, eroding wages and savings.
In brief
Cuba's informal dollar rate hits record 800 pesos, eroding wages and savings. Cuba's informal dollar rate reached 800 pesos, nearly 11 times the average state wage of 7,354 pesos. Originally reported by The Rio Times.
Record Dollar Rate
Cuba's informal dollar rate reached a record 800 pesos on Thursday, 15 October, and held there on Friday.
“The Cuba dollar rate on the informal market reached a record 800 pesos on Thursday, 15 October.”
Wage Impact
At 800 pesos per US$ the average state wage of 7,354 pesos is worth about US$9.19 a month.
“The average state wage of 7,354 pesos is worth about US$9.19 at 800 pesos per US$.”
Rate Comparison
Banks buy dollars at 693 to 695 pesos, while state-run Cadeca sells at 704 pesos in city centres and 690 at airports.
“14ymedio says banks buy dollars at 693 to 695 pesos, well below the informal rate.”
Recent Trends
The dollar rose 10 pesos to 800 on Thursday, following 770 on 7 October and 795 on 14 October.
“14ymedio lists the dollar at 785 pesos on Sunday, 4 October, 770 on Wednesday, 7 October, and 795 on Wednesday, 14 October.”
Economic Context
Since the end of June, the dollar has gained 195 pesos (32.2%), with the average state wage at 7,354 pesos.
“Since the end of June, when it closed at 605 pesos, the dollar has gained 195 pesos, or 32.2%.”
US Reader Impact
A US$100 gift buys about 80,000 pesos, nearly 11 times the average state wage of 7,354 pesos.
“A US$100 gift now buys about 80,000 pesos at the informal rate, nearly 11 times the average state wage.”
What to Watch
The dollar may hold 800 pesos when daily readings resume on Monday, 19 October, and the informal euro rate could pass 900 pesos.
“What to watch whether the dollar holds 800 pesos when daily readings resume on Monday, 19 October.”
Private Exchange House
The first private exchange house opened in Havana with the central bank's authorization, according to 14ymedio.
“14ymedio names it ADT 64 in Santa Clara and says its prices have not stayed below informal quotes since the recent rise.”
Inflation Impact
Annual inflation reached 28.44% in September, adding to price pressure on imported food and goods.
“Annual inflation reached 28.44% in September, as the Rio Times reported on Thursday in its inflation report.”
US Treasury Action
The US Treasury sanctioned the Cuban bank BICSA in the week the dollar rate hit 800 pesos.
“The US Treasury sanctioned the Cuban bank BICSA, as the Rio Times reported.”
What Comes Next
elTOQUE and CiberCuba will update their readings daily, with the dollar rate potentially holding at 800 pesos on Monday.
“elTOQUE and CiberCuba update their readings daily, so Monday, 19 October, will show whether 800 pesos holds.”
The headline
Cuba's informal dollar rate reached 800 pesos, nearly 11 times the average state wage of 7,354 pesos.
