In a recent video shared on social media, Cuban entrepreneur Sandro Castro, grandson of the late dictator Fidel Castro, expressed concern over the escalating inflation in Cuba. He stated that the issue has become a significant problem impacting not only individuals but also business owners.
“I am worried about the dollar, which has reached a value of 500 CUP,” Castro remarked, referring to the price of the U.S. dollar on the informal market. He pointed fingers at El Toque, an independent outlet that regularly publishes informal exchange rates in the country, blaming it for the rising cost of the dollar.
“I appreciate that many people have spoken out against El Toque. It’s not a stock exchange, but it’s what we rely on here in Cuba. It’s good for people to challenge them because inflation affects us all,” he stated.
During his address, Sandro Castro also urged the organization of bulk dollar buyers, particularly private business owners, micro, small and medium enterprises (MSMEs), producers, and importers, to collaborate collectively to prevent further increases in the exchange rate.
“I think those who purchase this currency, the dollar, in large volumes should work more collaboratively and form an association or syndicate of Cuban entrepreneurs, traders, and business people... to work together and prevent this rate from causing more inflation,” he added.
Castro justified his proposal by highlighting the need for private entrepreneurs to have stability to continue operating within the country, despite the "thousands of difficulties we face, including both external and internal blockades, which harm us significantly.”
Sandro Castro's comments come amid an unprecedented economic crisis characterized by rampant inflation, continuous devaluation of the Cuban peso, and widespread shortages of essential goods.
Meanwhile, El Toque has repeatedly emphasized that its platform does not set prices in the informal market but instead reflects daily transactions among Cubans in the absence of a transparent and functional official market.
Understanding the Economic Challenges in Cuba
What is causing the inflation in Cuba?
The inflation in Cuba is primarily driven by economic mismanagement, currency devaluation, and external and internal blockades that disrupt the supply chain and increase the cost of goods.
How does El Toque influence the dollar exchange rate in Cuba?
El Toque does not influence the dollar exchange rate; rather, it reports the daily informal market rates based on actual transactions among Cubans due to the lack of an official transparent market.
Why does Sandro Castro propose forming a syndicate of entrepreneurs?
Sandro Castro suggests forming a syndicate of entrepreneurs to collectively manage and stabilize the dollar exchange rate, thereby reducing inflation and creating a more stable business environment.