(Energy Analytics Institute, Piero Stewart, 7.Jun.2018) – Cuba’s foreign currency will be under pressure this year.
“Difficulties with fuel supply and a drop in exports have continued to put pressure on the availability of foreign currency,” wrote Caribbean Economist Marla Dukharan in a recent Caribbean Economic Report, which is available monthly on her website.
Additionally, Venezuela’s state oil company PDVSA reportedly acquired $440 million in foreign crude this year to send to Cuba on favourable credit terms, however, recent U.S. sanctions against Caracas-based PDVSA could impact such deals in the future, she said.
As a result, low growth in Cuba of less than 2% is likely to persist as a result of Venezuela’s crisis and shifts in U.S. policy, while availability of currency will remain a challenge, said Dukharan, also Chief Economist at Barbados-based fintech company, Bitt Inc.
“The transition of power underway [in Cuba] is not expected to drive large sways in policy with the new President Miguel Diez-Canel Bermúdez committing to the same economic model and reforms being implemented by the Castros,” Dukharan concluded.
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