Inflation in Cuba and what is responsible

[Ryan]

An interesting read and a name not often mentioned outside of Cuba. Google translate works well on it.

It's a long one, light a cigar. And maybe a drink, it's depressing. Not looking good for the near to medium term.

https://diariodecuba.com/economia/1643648639_37170.html

 

[riderpride]

Thanks! I'll give it a read tonight. 

Cheers

[Habana Mike]

Saw it in action over the past 8 years. Things got better, a little better, and then boom! Went to crap. Sad shame for the Cuban people.

[NSXCIGAR]

I think the main issue was no USD or EUR coming in during the pandemic. Despite the government's attempts to eliminate USD it appears that it has reemerged as the currency of choice even over the EUR as of today. 

The Cubans are all trading currency on the black market so they're essentially using the dollar. As long as they're not holding CUP for more than a week or two they're fine. It doesn't matter what currency you're using if there's nothing to buy. That seems to be the issue. 

[JohnnyO]

A family memeber works in a restaurant outside of T2, she says customs officials from T3 dine there frequently. When they pay their bill, their wallets are loaded with USD, not Euros or CUP. So the USD is the most desirable at the moment. Its still holding at 100:1 for the CUP. John

[NSXCIGAR]

17 hours ago, JohnnyO said:

So the USD is the most desirable at the moment. Its still holding at 100:1 for the CUP.

Yes, it didn't take long at all. 10 weeks or so. 

I'm also seeing some trades already at 105 CUP to 1 USD as of today. Yikes. 5% inflation in a week? Totally out of control. 

It's actually a boon for Cubans charging tourists in CUP who don't know to exchange on the street. Espacios pizzas are $30 each at the official rate!

 

[JohnnyO]

A factor that will drive the CUP rate even further up is that there is rumors that the Nicaragua flights are destined to be cancelled fairly soon. I heard that in Havana and Miami. No explanation as to the reason why. My guess is that Biden is putting pressure on the charter flight operators by either threatening to seize their planes or freezing their accounts. So there will be a rush to get rid of the CUP. John

[RijkdeGooier]

Current street price 110:1 eur 

 

On 2/8/2022 at 2:56 AM, JohnnyO said:

A factor that will drive the CUP rate even further up is that there is rumors that the Nicaragua flights are destined to be cancelled fairly soon. I heard that in Havana and Miami. No explanation as to the reason why. My guess is that Biden is putting pressure on the charter flight operators by either threatening to seize their planes or freezing their accounts. So there will be a rush to get rid of the CUP. John

Because they don’t need a visa for Nica flights. It has become an immigration leak. 

[RijkdeGooier]

On 2/7/2022 at 4:56 PM, JohnnyO said:

A factor that will drive the CUP rate even further up is that there is rumors that the Nicaragua flights are destined to be cancelled fairly soon. I heard that in Havana and Miami. No explanation as to the reason why. My guess is that Biden is putting pressure on the charter flight operators by either threatening to seize their planes or freezing their accounts. So there will be a rush to get rid of the CUP. John

The Nica fligjts are indeed cancelled

Dollar is down against CUP again