The US dollar is trading at the opening at 25 Cuban pesos at the official exchange rate, which represented an increase of 5.06% compared to the previous day's figure, when it ended with 23.80 Cuban pesos.
Compared to last week's profitability, the US dollar marked an increase of 4.29%, so that in year-on-year terms it still maintains an increase of 4.62%. If we compare the figure with previous days, it reverses the data of the previous day where it experienced a decrease of 0.03%, showing itself unable to establish a definite trend in recent days. With reference to the volatility of the last week, it shows a visibly higher return than the volatility reflected in the figures of the last year, which shows that it shows greater variations than the general trend in value.
In the last year, the US dollar has changed by a high of 25 Cuban pesos, while its lowest level has been 23.80 Cuban pesos.
The Cuban peso is the legal tender in Cuba and is used by the majority of the population that is divided into 100 units called cents.
As of January 1, 2021, the Cuban convertible peso ceased to exist as a legal tender, since it was the most accepted in the payment of obligations and although it still has legal value, it is not accepted in the payment of goods and services.
In 2002, the exchange rate was 21 Cuban pesos per convertible peso, but then it devalued to 26 Cuban pesos per convertible peso. As for the dollar, it is equivalent to 25 Cuban pesos and one Cuban convertible peso.
It was not until April 2005 that the government agreed to devaluate the Cuban peso with respect to the convertible by transferring it to 25 Cuban pesos per convertible peso and the latter remained at a 1:1 parity with respect to the dollar plus a 10% tax, so that for every dollar changed 12% of its value is lost.
This was the case until January 1, 2021, when the “Zero Day” of monetary unification was agreed, although for many the disappearance of the convertible peso was seen as a devaluation, for others it was only a measure to catch up with the 24 Cuban pesos per dollar.
As a result, demand for foreign exchange also boosted a black exchange market in which one dollar was sold for every 100 Cuban convertible pesos.
Currently there are coins of 1, 2, 5 and 20 cents and 1, 3 and 5 pesos; while in banknotes there are 1, 3, 5, 10, 20, 50, 100, 200, 500 and 1000 pesos.
Economically, the coronavirus pandemic has hit the nation as well as many others globally, so the government expects that in 2022 the country will have a growth in its Gross Domestic Product of only 4 percent, after a fall of 11% recorded in 2020, from which in 2021 it could not fully recover, as it was estimated at 2 percent.
It should be noted that Cuba is not part of international organizations such as the World Bank or the International Monetary Fund (IMF), so estimates of economic growth are made by the State itself.
Other factors such as inflation and the devaluation of the peso skyrocketed after the unification of its national currency was launched. In addition, the non-payment of international creditors and the pressure by the United States government with the economic embargo that, according to the Cuban administration, these measures have resulted in the loss of 9.15 million dollars.
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