Cuba approves comprehensive reform plan for its foreign exchange market

Cuban Prime Minister Manuel Marrero Cruz, in a speech to the National Assembly of People’s Power, gave a detailed presentation on the country’s economic performance in the first half of the year. He stated that Cuba is operating under conditions he described as a “war economy” due to the escalating US blockade.

Marrero highlighted the successes of the government’s program to correct errors and promote economic growth, while noting that current challenges will be addressed through reformist policies.

‘Inflation is slowing, but the level remains high’

Prime Minister Marrero noted that annual inflation was 14.75%, which is below the initial forecasts of 30%.

He pointed out that there is a trend of relative slowdown in the inflation rate but stated that current levels are still high, which negatively affects prices and the livelihood of the people.

Regarding monetary policy, the prime minister announced that the government is continuing the practice it calls “partial dollarization,” despite an official strategy to end it.

Marrero emphasized that collecting foreign currency and directing it toward social programs is a priority under the current economic conditions.

Additionally, Marrero announced that the government has approved a comprehensive plan to reform the foreign exchange market. The plan includes updating cash transaction systems in all regions and implementing a clear communication policy with citizens to explain these reforms.

The Prime Minister stated that the supply of foreign currency is a fundamental condition for implementing the economic plan, adding that steps are being taken to simplify procedures and expand cooperation between public companies and the private sector to encourage foreign investment.

‘Housing plan falls short of targets’

Addressing the housing crisis, Marrero acknowledged that only 53% of the housing plan could be implemented.

The Prime Minister attributed this situation to the shortage of raw materials and fuel, as well as the limited production of domestic construction materials.

The Cuban Prime Minister also presented the main outlines of the government’s roadmap for the second half of the year.

The plan focuses on implementing monetary reforms, increasing exports and investments, boosting food production, improving tax and wage policies, reducing power outages, and enhancing the water supply.

‘Trump administration responsible for tightening the blockade’

In his speech on external challenges, Marrero held the administration of US President Donald Trump responsible for tightening the economic blockade.

The Prime Minister stated that aggressive policies aimed at blocking imports and discouraging trade partners from investing in Cuba continue with the goal of suffocating the national economy.

Marrero Cruz concluded his speech by emphasizing the need for national unity in the face of current conditions, stating that challenges persist in vital sectors such as electricity and prices.

However, Marrero expressed confidence in Cuba’s ability to protect the gains of the revolution and build a more just and stable society.