The Cuban leadership has decided to introduce a floating exchange rate to stabilize the economy and restore the convertibility of the Cuban peso, according to the Granma newspaper.
Currently, the official fixed exchange rate of the dollar in the republic is 24 pesos for legal entities and 120 pesos for individuals when exchanging cash at bank branches. It is noted that from December 18, the Central Bank of Cuba will publish daily data on the floating exchange rate, based on data on the demand and supply of foreign currency.
The decision is based on “the objective existence of discrepancies between the official exchange rates and the real values, reflecting the shortage of foreign currency“. Currently, the exchange rate of the dollar on the black market exceeds 400 pesos.
The authorities state that the purpose of the measures introduced is to stimulate the inflow of foreign currency into the foreign exchange market, which should provide sources of financing for its activities and reduce the role of the informal market. There will be no immediate transition to a floating exchange rate: for a certain period, the duration of which will be announced later, the current exchange rates will continue to apply to certain transactions.