Por la esquerda… (Black market)

The Cuban economy operates on a significant scale of informality, comprising approximately 90% of its overall economy. While official channels offer limited goods, the black market serves as a crucial source for acquiring a wide range of products. This dynamic often leads to a misconception among tourists when considering the average salary and the cost of items. Intuitively, one might assume that if the average salary is around $20 and an item costs $10, it would take an average Cuban about 15 days of work to afford it. However, the presence of the black market complicates this calculation.

You can’t survive without black eggs

Surviving in Cuba entails a different approach. Cubans, particularly those in Havana, require an income of around $150-200 per month (half that amount outside of Havana) to meet their basic needs. With an official salary of $15, individuals must supplement their income through various informal means. The income generated “on the side” becomes their primary source of sustenance.

Engaging in the informal economy, often referred to as “por la esquierda,” is a necessity for every Cuban, and they actively participate in it. Consequently, relying solely on the official salary becomes an unreliable measure for assessing prices and disposable income. In reality, actual incomes tend to be higher than reported, while prices are generally lower than anticipated.

Real economics

The existence of the black market in Cuba enables people to survive, generate income, and purchase goods. However, as this sector is not reflected in official statistics, it results in a significant misinterpretation of the country’s true economic situation.

Not poor and helpless!

It is important to dispel the misconception that all Cubans are poor and entirely reliant on foreigners. In reality, Cuba has a diverse range of economic statuses, including both rich and poor individuals. Additionally, the notion that all Cubans solely depend on foreigners for their livelihood is inaccurate. Cuba possesses its own hidden economy and market, which plays a significant role in sustaining its population. This doesn’t mean that there aren’t any poor and helpless Cubans, but the same goes for your home town.

For tourists, discovering the black market can be challenging. While it may be relatively easy to find an illegal taxi, locating items like an iPad or a fish tank can prove to be much more difficult. Cubans are adept at establishing networks and connections to procure or sell goods, making their black market highly efficient. It is worth noting that not everything available on the informal market is illegal.

The black currency

The abolition of the CUC in 2021 led to the emergence of a new black market centered around currency exchange. The intricacies of navigating this market are elaborated upon in our book. However, it’s important to remember that valuable information holds value, and like any other family, mine needs to sustain itself. Buy the damn thing! Please…

The informal currency market is very easy to find. In fact it will find you every 20 meters or so.. It has a few pitfalls however… Handle with care, it’s illegal to exchange money on the street….

To explore the fascinating paradoxes that govern Cuba, I encourage you to delve into our book. On this page, we will provide a tip that can save you valuable time during your visit to Cuba.

Last updated July 2023

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