Cubans struggle as peso loses half its value in a year on informal market

People wait in line to buy foreign currency in Havana, Cuba, August 1, 2023. REUTERS/Alexandre Meneghini

HAVANA (Reuters) - The Cuban peso was trading on the informal market at an all-time low of 230 to the dollar on Wednesday, slumping to half its value a year ago as consumers struggle with surging inflation and scarce goods, a widely watched tracker showed.

The state considers the informal exchange rate, widely tracked via the independent news outlet El Toque, as illegal, but it has been unable to shut it down. The state officially pegs the local currency at 120 pesos to the dollar, but it has few to exchange.