Summary Peso's informal value hits all-time low vs dollarAnnual inflation surges to 45%Plunge in peso value 'something horrible', says teacherHAVANA, Aug 2 (Reuters) - The Cuban peso was trading on the informal market at an all-time low of 230 to the dollar on Wednesday, slumping to half its value a year ago as consumers struggle with surging inflation and scarce goods, a widely watched tracker showed.
The state considers the informal exchange rate, widely tracked via the independent news outlet El Toque, as illegal, but it has been unable to shut it down.
The state officially pegs the local currency at 120 pesos to the dollar, but it has few to exchange.
The weakening informal rate was similar to a fall in the government’s electronic equivalent, which residents must use to purchase goods at state stores that are relatively well-stocked compared with peso outlets.
Prices grew 39% last year, a figure many economists say underestimates the rate as it does not adequately account for a growing informal market.
Persons:
HAVANA, Bert Hoffman, Alejandro Gil, May, Sonia Nunez, Gil, Mario Fuentes, Christian Plumb, Conor Humphries
Organizations:
Cuban, German Institute of Global, Communist, Economy, Thomson
Locations:
America, Hamburg, Cuban, Havana