On Tuesday, July 28, the informal currency market in Cuba opened with mixed signals: by 10:00 a.m. local time, the U.S. dollar saw a slight decline, the euro remained steady, and the MLC slipped compared to the previous day.
Despite a calm start, all three currencies have seen significant gains over the past week and month.
Current Exchange Rates
The U.S. dollar is trading at 673 Cuban pesos (CUP) in the unofficial market, with buying rates around 670 CUP and selling at 675 CUP. This marks a decrease of 1 peso from the previous day, when the average was 674 CUP. Over the past week, the dollar has increased by 5.5 pesos, rising from 667 CUP a week ago, reflecting a 0.8% increase.
Looking back 30 days, the dollar has climbed 57.5 pesos, an increase of 9.3%, although this comparison should be approached with caution due to possible index methodology adjustments.
In this period, the dollar has fluctuated between a low of 610 CUP and a high of 675 CUP, dominating the informal market amidst a chronic currency shortage.
Euro and MLC Performance
The euro begins the day valued at 788 CUP, with purchase offers at 780 CUP and sales at 795 CUP. It remains unchanged from the previous session, where it also closed at 788 CUP.
Over the past week, however, the euro has risen by 17 pesos, a 2.2% increase from 771 CUP seven days ago. In a 30-day view, the gain reaches 87.5 pesos (+12.5%), though this figure might include methodological adjustments.
The euro's 30-day peak is 790 CUP, and its lowest was 688 CUP. It surpasses the dollar by 115 pesos, solidifying its dominant position in Cuba's parallel market.
The MLC is approximately 485 CUP, with buying at 430 CUP and selling at 539 CUP. This figure should be seen as indicative due to the low transaction volume supporting it at this time of day.
Compared to the previous day, the MLC has fallen by 9.5 pesos, a 1.9% decrease from 494 CUP. Yet, over the last week, it has gained 43.5 pesos (+9.9%), and over the previous month, it has climbed 58 pesos (+13.6%), with similar methodological reservations applying to other currencies.
Without physical existence, the MLC is limited to state-run stores that accept it, restricting its circulation compared to cash currencies.
Official vs. Informal Rates
The official exchange rate from the Central Bank of Cuba (Segment III) remains significantly below the informal market rates, set at 601 CUP per dollar and 684 CUP per euro. The gap between the official and informal rates exceeds 72 pesos for the dollar and 104 pesos for the euro, highlighting the disconnect between the formal economy and the daily reality of Cubans.
Despite Segment III being introduced as a more flexible exchange mechanism, its official rates remain far from the informal market's and fail to meet the population's real currency demand.
This month, the official dollar rate rose from 589 to 601 CUP, while in the informal market, it hovers around 673 CUP, a disparity Cubans must contend with when accessing foreign currency outside the state banking system.
In a context of continuous inflation, low state wages, and increasing partial dollarization of the economy, fluctuations in the informal market directly affect internal prices and Cubans' purchasing power.
The slight retreat of the dollar this Tuesday offers minimal relief, but the accumulated trend over the past month — with increases between 9% and 13% across all three currencies — continues to erode the Cuban peso's purchasing power.
The gap between official and informal rates reflects the ongoing currency shortage within the state banking system and the high demand for dollars and euros by the population, whether for emigration, importing goods, protecting savings, or making purchases in the private sector.
The CiberCuba Exchange Rate is an index of the Cuban informal market, compiled through automated analysis of thousands of currency buy-sell postings in Telegram and Facebook groups. The calculation excludes atypical offers and spam messages, weights each transaction based on its age, and consolidates a representative value that is updated several times a day.
Currency Equivalency
U.S. Dollar (USD) to Cuban Peso (CUP) Equivalency:
- 1 USD = 673 CUP
- 5 USD = 3,365 CUP
- 10 USD = 6,730 CUP
- 20 USD = 13,460 CUP
- 50 USD = 33,650 CUP
- 100 USD = 67,300 CUP
Euro (EUR) to Cuban Peso (CUP) Equivalency:
- 1 EUR = 788 CUP
- 5 EUR = 3,940 CUP
- 10 EUR = 7,880 CUP
- 20 EUR = 15,760 CUP
- 50 EUR = 39,400 CUP
- 100 EUR = 78,800 CUP
- 200 EUR = 157,600 CUP
Understanding Cuba's Currency Market
Why is the informal currency market important in Cuba?
The informal currency market is crucial in Cuba due to the scarcity of foreign currency in the official system, forcing citizens to turn to unofficial channels for their currency needs, which impacts everyday transactions and purchasing power.
What causes the disparity between official and informal exchange rates in Cuba?
The disparity arises from the Cuban government's inability to meet the public's foreign currency demands, leading to a higher demand in the informal market, which drives up exchange rates significantly compared to official rates.
How does the fluctuation in the informal market affect Cubans?
Fluctuations in the informal market directly impact internal prices and the cost of living, as many goods are priced in foreign currencies, affecting Cubans' ability to purchase essentials and maintain savings.