Foreign currency purchases should not lead to a rise in prices

HAVANA, Cuba, Aug 3 (ACN) Alejandro Gil Fernández, deputy prime minister and head of the Ministry of Economy and Planning (MEP), clarified that the purchase of foreign currency by the State should not lead to higher prices, since this measure is aimed at promoting observance of the legislation and contributing to the country's recovery.

“We have an increased fiscal deficit due to the need to inject money into circulation without productive backing, which fuels inflation, but a gradual recovery of the economy will level out this deficit as we take other measures regarding tax evasion,” he pointed out.

He also clarified that the new exchange rate is only valid for purchases; so when the time comes to facilitate the sale of foreign currency, another rate will be adopted, which will balance supply and demand. “However,” he added, “the sales will have certain limits to prevent the exchange rate from rising steadily, which is not the way we want to manage our economy (…) With this exchange rate we intend to collect foreign currency and use it for the benefit of the country and to have a society with the greatest possible level of equity and social justice.”