Professor Steve Hanke, an economist at Johns Hopkins University in Baltimore, USA, informed through a report on Twitter, the updated status for March 2023, of several currencies devalued against the US dollar this year and it came as no surprise.
According to Hanke, “Since January 2022, the Cuban peso has lost 61% of its value against the dollar. Cuba ranks fourth on Hanke’s CurrencyWatchlist this week. The communist regime has destroyed the value of the Cuban peso”.
Los data Calculated by this analyst, indicate that this list is led by the Zimbabwean dollar, followed by the Venezuelan bolivar, which has lost more than 80% of its value against the US currency since January, and in third place is the Lebanese pound. Then Cuba would follow when the dollar on average costs over 185 pesos in the informal market.
In Latin America, behind Cuba, follows Argentina, in tenth place, with a devaluation of over 46% against the dollar. Venezuela, Cuba and Argentina are the only three countries on the continent that find themselves in this situation. The rest of the nations with currency crises are mostly African or Middle Eastern.
It is no secret that in recent decades the Cuban peso has undergone a significant devaluation against the US dollar, especially after the failed “economic order” policy that caused unlimited inflation on the island. This phenomenon has generated various economic and social consequences for the island, in the midst of a migration and social crisis of all kinds.
To alleviate this situation, the Cuban government continues to hit the blind spot and experiment with measures that it removes and replaces, as is the latest case of the dollarization of Cuban banks, once again allowing deposits in that currency to be made in Cuban checking accounts on the ‘island.