Cuba Admits It Does Not Know Where Its Market Reforms Will Lead
A senior Cuban official says Havana does not know how its 176-measure economic opening will turn out, as the peso keeps sliding on the street market. The post Cuba Admits It Does Not Know Where Its Market Reforms Will Lead appeared first on The Rio Times .
Cuba has embarked on its most extensive economic opening in decades, acknowledging officials are uncertain about the reforms' outcomes. Deputy Foreign Minister Carlos Fernández de Cossío admitted change was deeper than any time since the 1960s, as reported by CiberCuba. The package of 176 measures, introduced in June 2026, allows foreign capital investment in private firms and cooperatives for the first time, while also permitting private exchange houses.
Small businesses can now trade abroad without state intermediaries, as announced by the Central Bank of Cuba. These reforms come after six years of economic contraction, with the Central Bank issuing 10,000- and 20,000-peso notes to tackle cash shortages. The first private exchange house opened in Santa Clara as a pilot, according to Diario de Cuba.
The Central Bank's floating exchange rate, near 664 pesos per dollar, is significantly higher than the official 120 pesos per dollar rate. Cuban pensions, valued at about US$25 at the fixed rate and US$4 informally, still struggle to cover basic necessities like a carton of eggs. The reforms have faced criticism from party leaders who view them as "pure and hard capitalism."
While the Central Bank plans to base a new rate on the Santa Clara pilot, the timeline remains unclear.
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