This week began with unexpected shifts in Cuba's informal currency exchange market. As of Monday, the exchange rate for the US dollar (USD) increased against the Cuban peso (CUP), while the euro (EUR) and the Freely Convertible Currency (MLC) remained stable without any changes.
According to current data, the dollar's rate increased from 365 CUP on Sunday to 367 CUP on Monday, showing a rise of 2 pesos within just 24 hours. In contrast, the euro retained its rate at 380 CUP, and the MLC also stayed unchanged at 265 CUP.
Monday Exchange Rates Highlight Dollar's Rise
The informal exchange rates in Cuba as of Monday, April 28, 2025, at 10:00 AM are as follows:
- Dollar (USD) to Cuban peso (CUP): 367 CUP
- Euro (EUR) to Cuban peso (CUP): 380 CUP
- MLC to Cuban peso (CUP): 265 CUP
This slight increase in the dollar disrupts the relative stability seen in recent days, stirring expectations among those who rely on the parallel market to acquire foreign currency. Typically, currency movements intensify after weekends, as informal economic activities pick up pace.
Factors Behind Currency Fluctuations
Experts suggest that these fluctuations are largely due to the persistent high demand for dollars, limited supply in the informal circuit, and the country's ongoing economic tensions. Meanwhile, the stability of the euro and MLC could be attributed to fewer transactions involving these currencies compared to the dollar, which remains the primary medium for store purchases and remittances.
Although the dollar's increase is modest, it underscores the general trend of volatility that characterizes Cuba's informal market, where currency scarcity and economic uncertainty continue to exert pressure on exchange rates.
Understanding Cuba's Informal Currency Market
Why did the US dollar increase in the Cuban informal market?
The increase in the US dollar rate is primarily due to high demand, limited supply in the informal market, and ongoing economic tensions in Cuba.
How are the euro and MLC rates remaining stable?
The stability of the euro and MLC is likely due to fewer transactions involving these currencies, as the US dollar remains the main currency for purchasing goods and receiving remittances.