- Economist Javier Pérez Capdevila criticized the current economic situation in Cuba, specifically regarding salary hikes and inflation.
- Cuban government policy sets salaries, resulting in a decline in purchasing power.
Cuba Denominates State Salaries in Pesos Amid Economic Crisis
What happened
State salaries in Cuba are now denominated in pesos. The average monthly state salary was reported at 6,930 pesos in April 2026. The island continues to face a long economic crisis, characterized by limited purchasing power for state salaries and frequent blackouts.
From riotimesonline.com
Why it matters
The policy change occurs while Cuba experiences significant population decline, with a net migration loss of 245,264 people in 2025. The state's economic situation is further constrained by a US embargo dating from 1962.
Cuban government policy sets salaries, which has resulted in a decline in purchasing power. Economist Javier Pérez Capdevila has criticized the current economic situation in Cuba regarding salary hikes and inflation.
From riotimesonline.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- pesoSpeculative
Currency devaluation and inflation could erode the peso's purchasing power.
- central bankSpeculative
Inflation and currency instability could challenge the central bank's ability to maintain monetary policy control.