Cuba Admits It Does Not Know Where Its Market Reforms Will Lead
Key Facts
Cuba is attempting its broadest economic opening in decades after six years of shrinking output. A senior official now admits the government does not know where the reforms will lead.
“We have to do something,” said Deputy Foreign Minister Carlos Fernández de Cossío, admitting officials do not know the outcome. Speaking to Breaking Points, he said change was deeper than at any time since the 1960s, CiberCuba reported.
Why This Matters
The package of 176 measures, unveiled in June 2026, is Cuba’s largest economic reform in decades, regional outlet NODAL reported. It lets foreign capital invest directly in private firms and cooperatives for the first time and allows private exchange houses.
Small private companies can now import and export without going through state intermediaries. The Central Bank set out plans this week to admit private and foreign capital into banking, CiberCuba reported.
Cuba’s first private exchange house has opened in Santa Clara as a pilot, Diario de Cuba reported. The reforms follow six years of economic contraction, according to NODAL.
Life on a Falling Peso
On 16 September, the Central Bank issued 10,000- and 20,000-peso notes to ease cash shortages, EFE reported. Cuba runs several official exchange rates, including a fixed rate of 120 pesos per dollar and a floating rate.
At the fixed rate, the notes are worth about US$83 and US$167, against about US$14 and US$29 at 700. The informal rate tracked by elTOQUE, an independent outlet, stood at 700 pesos per dollar on 16 September.
On 17 September, the Central Bank’s floating rate was 664 pesos per dollar, against 703 informally, CiberCuba reported. EFE cited a monthly pension of 3,000 pesos, worth US$25 at the fixed rate and about US$4 informally.
“A carton of eggs will still eat up almost the whole pension,” a 60-year-old Havana resident told EFE. Annual inflation stood at 25.19% in August, La Silla Rota reported.
What Is Not Yet Known
It is not known how quickly the measures will reach ordinary Cubans, who are paid in pesos. The Central Bank says the Santa Clara pilot will inform the official rate for private buyers, Diario de Cuba reported.
No date has been announced for a new rate based on that data. It is also unclear how leaders will answer party critics who call the plan “pure and hard capitalism”, as CiberCuba reported.
Frequently Asked Questions
What are Cuba’s 2026 economic reforms?
A package of 176 measures unveiled in June 2026 opens private firms to foreign capital and allows private exchange houses. Small businesses can also trade abroad directly.
How much is the Cuban peso worth?
The informal rate tracked by elTOQUE reached 700 pesos per dollar on 16 September 2026. Official rates range from a fixed 120 to a floating rate near 664.
Sources: CiberCuba, uncertainty in Havana over the reforms, NODAL, National Assembly approves 176 measures, Infobae/EFE, new 10,000- and 20,000-peso notes, Diario de Cuba, first private exchange house, CiberCuba, informal and official dollar rates on 18 September, CiberCuba, Central Bank opens banking to private and foreign capital, La Silla Rota, new notes and inflation
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times