The Cuban-American singer Seidy La Niña recently took to her social media platforms to share a video showcasing the 1,000 peso bills currently in circulation in Cuba. Her video unveils the drastic decline in purchasing power of the national currency under the leadership of Miguel Díaz-Canel.
Filmed in a casual tone in both Spanish and English, the clip features a man counting a thick stack of pesos, as Seidy sarcastically comments, "With this, you can buy a ton of things. Wow! You have so much money! You're a millionaire!"
Seidy then addresses the camera directly, holding up a bill, saying, "For those asking online what Cuban money looks like, this is it, these are the pesos."
It appears the man handed her 70,000 pesos, which, according to the informal exchange rate on Friday—664 Cuban pesos per dollar, based on theTOQUE—amounts to roughly 105 dollars.
While 70,000 pesos may sound substantial in nominal terms, it is far from it. In Cuba, a 25 kg sack of rice sells for about 31,800 pesos in the informal market, and a carton of eggs can cost between 3,000 and 4,000 pesos.
The disparity becomes stark when compared to official salaries. As of July 1st, the minimum wage stands at 3,210 CUP, which is less than five dollars at the informal exchange rate. The average official salary doesn't even reach 7,000 CUP, equating to less than 11 dollars.
Independent economists estimate that meeting basic needs for a single person requires 96,060 CUP per month, a staggering 14 times the official average salary.
The video emerges during Seidy's first visit to Cuba in nearly seven years.
The artist arrived on the island on July 14th, a visit filled with the joy of reuniting with family and the sorrow of not being able to see her father, who had passed away. On Wednesday, in Guanabacoa, Seidy had to step out of her car due to the overwhelming number of fans who recognized her.
Seidy, who celebrated earning her first million dollars in January and purchased an apartment outright, returns to a country where that amount symbolizes decades of labor for most Cubans.
Understanding Cuba's Economic Challenges and Currency Issues
What is the current exchange rate for the Cuban peso?
As of the latest report, the informal exchange rate is 664 Cuban pesos per dollar.
How much does it cost to meet basic needs in Cuba?
Independent economists estimate that an individual needs approximately 96,060 CUP per month to cover basic necessities.
What is the average salary in Cuba?
The average official salary in Cuba is less than 7,000 CUP, which is less than 11 dollars at the informal exchange rate.