Cuba's Economic Challenges: Inflation and Currency Access Issues

Cuba's economic landscape is facing significant challenges, particularly regarding inflation and currency access. The Banco Central de Cuba (BCC) has introduced a new banking channel allowing micro, small, and medium enterprises (mipymes) to legally acquire foreign currency through the official financial system.

This move, which is part of a broader adjustment in currency policy, allows these businesses to purchase foreign currency up to 50% of their average gross income from the last quarter, marking a crucial shift for the non-state sector, previously reliant on the informal market for currency exchanges, according to OnCuba News and CubaNet.

Despite these developments, the BCC has maintained existing limits for individuals at $100 per transaction, and the demand still outweighs supply, leading to ongoing waitlists for currency access, highlighting the persistent inflation and liquidity issues affecting the Cuban economy.

The introduction of a floating exchange rate aims to stabilize the currency market, but analysts note that without sufficient foreign reserves and transparent pricing mechanisms, the impact of these changes may be limited, as the informal market continues to dominate currency transactions.