In a frantic attempt to save an economy they have destroyed and in turn save themselves, the Cuban dictatorship announced on Wednesday it will now start buying U.S. dollars at 120 Cuban peso/dollar rate, similar to the rate found on Cuba’s black market. With the country’s infrastructure collapsing and shortages worsening, the communist regime is desperate for hard currency and control as the island’s economy continues its rapid decline.
Cuba announced it will begin purchasing on Thursday dollars and other convertible currencies at nearly five times the current rate in an effort to undercut the informal money market and capture the funds.
Central Bank President Marta Wilson Gonzalez, appearing on state-run television on Wednesday evening, said the state-run banking system had set a new rate of 120 pesos to the dollar, compared to the official fixed rate of 24 pesos, and 115 pesos on the informal market, according to independent online news outlet El Toque tracker, the most watched in the communist-run country.
Of course, the Castro dictatorship has no plans at the moment to sell U.S. dollars to Cuban citizens since that would defeat the purpose of their new policy.