Cuban comedian Ulises Toirac recently took to Facebook to discuss the crucial role of the private sector in Cuba's economy and its direct impact on the value of the Cuban peso.
Toirac highlighted that in 2024, the private sector in Cuba—primarily small and medium-sized enterprises (SMEs) and similar entities—accounted for approximately 55% of the country's retail sales.
Although this statistic is from a year ago, Toirac asserts that the growth of SMEs in 2025 has been remarkable, making their current contribution "substantially more significant."
The comedian illustrated how Cubans turn to SMEs to buy products scarce in state-run markets, using salt as an example, which is purchased internationally using foreign currency.
"If they sell it in Cuban pesos, there's no change in the currency used for purchase. The Cuban peso doesn't exist in the international currency market. Boom! It has to be exchanged here," he remarked.
His comments clarify that for these exchanges, the government’s new floating rate for currency conversion, applicable to the SME sector, is used.
However, Toirac is clear on one thing: before this policy—and likely continuing—SMEs have relied on the informal market to secure foreign currency for their operations.
"In other words, those selling chicken, salt, rice, etc., exchange the Cuban peso significantly in the same market as you," he noted.
This entire process, which begins with purchasing salt from Spain, adds "profit, costs, and exchange" to the final product, making it exceedingly expensive for Cuban buyers.
Toirac then pinpoints the issue, hinting at a solution without stating it outright.
After clarifying that U.S. sanctions don't impact Cuba's salt production, he detailed the process: "Inverted terraces are made on the coast. The tide rises, water enters, the tide falls, water evaporates leaving the salt, it's swept up, loaded on a truck and... off it goes."
Cuba, he noted, has one of the longest coastlines per area of territory in the world. "We have coastline to make puree... or salt in this case."
"If you PRODUCE the salt, you eliminate numerous expenses, disbursements, conversions (and distortions) that would allow salt to reach the counter at the price of... salt. This would mean that your salary could buy salt. In other words, the peso with which you're paid gains value. Period. End of story," he concluded.
"However...," he added.
Understanding Cuba's Economic Challenges through Ulises Toirac's Perspective
Why is the role of SMEs significant in Cuba's economy according to Ulises Toirac?
Ulises Toirac emphasizes that SMEs play a vital role in Cuba's economy as they accounted for about 55% of retail sales in 2024, and their influence continues to grow, offering significant contributions to the economy.
How does the purchase process of salt reflect broader economic issues in Cuba?
The process involves buying salt internationally with foreign currency, which is expensive due to exchange rates and added costs. This reflects the broader economic challenges faced by Cubans, where essential goods become overpriced due to these economic barriers.