Question

According to Cuba’s latest balance sheet what’s the country’s ability to defend its peg?

Answer 1

According to the balance sheet of Cuba, it can be seen that the currency of the country is very weak. When the currency of the country is weak, the country has less ability to defend its peg because it involves buying and selling of currency in the foreign market. For this the Central Bank of the country needs sufficient funds in their hands to carry out the changed process. But when the currency is weak, it is difficult for the country to defend its peg. Thus, the latest balance sheet of the country shows less ability in terms of defending its peg.