Dollar Strengthens in Cuba's Informal Currency Market

As of 10:00 a.m. local time in Cuba, the informal currency market on Friday, July 24, finds the U.S. dollar gaining ground compared to the previous day.

The American currency is trading at approximately 673 Cuban pesos, while the euro remains steady at 778 pesos. Meanwhile, the MLC is around 482 pesos, although this figure should be taken with caution due to the low volume of transactions recorded at this hour.

Exchange Rate Overview

U.S. Dollar (USD)

Today, the U.S. dollar is valued at 673 Cuban pesos (CUP) in the informal market, marking an increase of 2 pesos compared to the previous session when it stood at 671 CUP.

This week has shown a clear upward trend: a week ago, the dollar averaged 655 pesos, indicating an 18-peso rise over the past seven days, equivalent to a 2.7% increase.

Looking back a month, the rate was around 692 pesos, but it's important to note that this difference may partly reflect adjustments in the index methodology rather than pure market movement.

Euro's Position

Euro (EUR)

The euro is currently trading at 778 pesos, unchanged from the previous session.

Despite the recent stability, the European currency has seen significant gains over the week: just seven days ago, it was exchanged at 755 pesos, representing a 23-peso increase, or 3%.

A month ago, the euro averaged 796 pesos. Similar to the dollar, this variance might be influenced by methodological adjustments. Over the past month, the euro has fluctuated between 688 and 795 pesos, maintaining a lead over the dollar by 105 pesos in Cuba’s parallel market.

MLC Valuation

MLC

Currently, the MLC is approximately 482 pesos, a value that should be considered indicative due to the low volume of reported transactions, as noted by the source's advisory.

Compared to the previous day, it rose by 2 pesos from 480 CUP. Over the last week, the MLC has climbed 40 pesos from 442, marking a 9.1% increase.

In the past month, it has ranged from a low of 399 to a high of 543 pesos. Without physical existence, its use is confined to state-run stores that accept it, limiting its circulation compared to cash denominations.

Official vs. Informal Exchange Rates

The official exchange rate set by the Central Bank of Cuba (Segment III) today stands at 598 CUP per dollar and 680 CUP per euro, significantly lower than the prevailing rates in the informal currency market.

There is a gap of 75 pesos for the dollar and 98 pesos for the euro between the official and informal rates, highlighting the disconnect between Cuba’s formal economy and the everyday financial reality faced by its citizens.

Despite being introduced as a more flexible exchange mechanism, Segment III’s official rates remain far from those in the informal market and fail to meet the population’s actual demand for foreign currency.

Over the past month, the official dollar rate has moved from 574 to 598 CUP, and the euro from 653 to 680 CUP, adjustments that have not succeeded in closing the gap with the parallel market.

Amid sustained inflation, low state wages, and increasing partial dollarization of the economy, every fluctuation in the informal market directly affects internal prices and the purchasing power of Cubans.

The dollar's rise this Friday, though moderate in absolute terms, adds to an upward trend that has seen the American currency gain nearly 18 pesos against the Cuban peso over the past week.

Cuba’s informal currency market operates independently of state financial institutions, relying on networks of private buy-sell transactions. While not officially recognized by the Cuban government, this market effectively determines the real purchasing power of the Cuban people.

The CiberCuba Exchange Rate is an index of Cuba’s informal market, generated from automated analysis of thousands of currency trading posts in Telegram and Facebook groups.

The calculation excludes atypical offers and spam messages, weighs each transaction by its age, and consolidates a representative value that is updated multiple times daily.