This Thursday, the Freely Convertible Currency (MLC) experienced a significant increase in Cuba's informal market, jumping by 30 Cuban pesos from 400 CUP on Wednesday to 430 CUP.
This upward movement starkly contrasts with the stability of the dollar and the euro, both of which remained unchanged at their all-time highs: 540 CUP and 618 CUP, respectively.
The rebound of the MLC is particularly striking as just the previous day this digital currency had dropped by 20 pesos to 400 CUP, while the dollar and euro maintained their historic highs.
Volatile Trends in Cuban Currency
Throughout May, the MLC has fluctuated between 400 and 430 CUP, after hitting a recent low of 385 CUP on April 14, a day marked by the dollar's rise and the MLC's decline in opposite directions.
This volatility is an inherent characteristic of the MLC, a digital tool introduced by the Cuban regime in 2019 to attract foreign currency.
MLC's Unique Market Dynamics
Unlike the dollar and euro, the MLC lacks a clear official exchange rate against the Cuban peso, making it especially susceptible to rumors and shifts in supply and demand.
The dollar, meanwhile, has seen a consistent increase, starting January at 435 CUP and rising over 100 pesos in just four months. Conversely, the euro surpassed the 600 CUP mark for the first time on April 19 and has continued to set new records ever since.
Understanding Currency Fluctuations in Cuba
Why did the MLC increase by 30 pesos?
The MLC's increase is attributed to market volatility and changes in demand and supply, as it lacks a transparent official exchange rate.
How do the dollar and euro compare to the MLC in Cuba?
While the dollar and euro maintain stable, high values, the MLC is more volatile and lacks an official rate, making it more responsive to market changes.