By 8:00 PM Cuban local time, the informal currency market in Cuba concluded this Saturday, August 8, with a scene of relative steadiness.
The U.S. dollar remained unchanged, the euro lost some ground compared to the previous day, and the MLC saw a slight uptick, although its rate should be considered indicative due to the low volume of transactions in this segment.
You can check the exchange rate in Cuba's informal market with updates throughout the day.
Dollar Value Remains Unchanged
At the close of Saturday, the U.S. dollar was valued at 673 Cuban pesos (CUP), maintaining the same rate as at the start of the day, the previous session, and one week ago. It shows no fluctuation compared to yesterday.
Over a monthly horizon, the dollar has increased by 2.5 pesos from 670 CUP 30 days ago, marking a rise of 0.4%. This change might partially reflect methodological adjustments in the index.
Euro Experiences a Slight Decline
The euro closed at 781 CUP, a decrease of 2.5 pesos from the previous day’s 783 CUP. Compared to last week, it fell by 4.5 pesos from 785 CUP last Saturday.
In monthly terms, however, the euro has risen by 23 pesos from 758 CUP 30 days ago, a 3% increase, though caution is advised as this could include methodological index adjustments.
In the past month, the European currency hit a high of 790 CUP and a low of 745 CUP. It remains 108 pesos above the dollar, solidifying its dominant position in Cuba's parallel market.
MLC Shows Slight Increase
The MLC is positioned around 461 CUP by the end of the day, an indicative value given the limited transaction volume during this time. This marks an 8-peso rise from the previous session when it was reported at 453 CUP. However, on a weekly comparison, it has fallen by 14.5 pesos from 475 CUP a week ago.
Over the past month, the MLC has fluctuated between a low of 425 CUP and a high of 496 CUP. Lacking physical presence, its use is confined to state-run stores that accept it, limiting its circulation compared to cash currencies.
Official vs. Informal Exchange Rates
The official exchange rate set by the Central Bank of Cuba (Segment III) stands at 621 CUP per dollar and 717 CUP per euro, significantly lower than the rates governing the informal currency market.
Although Segment III was introduced as a more flexible exchange mechanism, its official rate remains far from the informal market rates and fails to meet the population's actual currency demand. The gap between the official and informal dollar rates exceeds 50 pesos, while for the euro, it approaches 64 pesos.
In an environment of persistent inflation, low state salaries, and increasing partial dollarization of the economy, each fluctuation in the informal market directly affects domestic prices and the purchasing power of Cubans.
The Exchange Rate Index of CiberCuba is an indicator of the Cuban informal market, developed through the automated analysis of thousands of currency buy-sell posts in Telegram and Facebook groups. The calculation filters out atypical offers and spam messages, weighing each transaction according to its recency, and consolidating a representative value updated several times daily.
Understanding Cuba's Informal Currency Market
Why is the informal currency market important in Cuba?
The informal currency market is crucial in Cuba due to its role in reflecting the real demand and supply of currencies, which the official rate often fails to satisfy.
What factors influence the exchange rates in Cuba's informal market?
Exchange rates in the informal market are influenced by currency scarcity, inflation, and the economic policies of Cuba's government, alongside global currency trends.
How does the exchange rate affect the everyday life of Cubans?
Fluctuations in the exchange rate impact the cost of living, as many goods are priced in foreign currencies, affecting affordability for Cuban citizens.