Cuba is in a deep economic crisis, marked by an extreme devaluation of the national currency, caused by multiple exchange rates and derisory salaries. The fuel deficit paralyzes transport and energy, and state stores are often empty, leaving citizens to rely on private shops, where prices are unaffordable. The average monthly salary is about 15 euros, and the monetary reform of 2021 led to a rapid loss of purchasing power.
On the black market, the dollar and euro are traded at much higher values than the official ones, generating a parallel economy. State-issued debit cards are often useless, and cash withdrawal is complicated by limits imposed by banks. Most Cubans seek to obtain foreign currency through tourism-related activities, essential for survival. The state has an urgent need for foreign currency for imports, but the embargo imposed by the U.S. complicates access to international financing. Remittances and income from tourism remain the last sources of liquidity, and a decrease in these could further worsen the economic situation.
On the black market, the dollar and euro are traded at much higher values than the official ones, generating a parallel economy. State-issued debit cards are often useless, and cash withdrawal is complicated by limits imposed by banks. Most Cubans seek to obtain foreign currency through tourism-related activities, essential for survival. The state has an urgent need for foreign currency for imports, but the embargo imposed by the U.S. complicates access to international financing. Remittances and income from tourism remain the last sources of liquidity, and a decrease in these could further worsen the economic situation.
Sources
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