On Tuesday, both the U.S. dollar and the euro gained further ground against the Cuban peso, reaching their highest levels in the past month within the country's informal currency exchange market.
By 8:00 p.m. local time, the U.S. dollar was trading at 720 Cuban pesos (CUP), while the euro soared to 823 CUP, as per the average rates provided by the CiberCuba Exchange Rate.
This marks a continuation of the upward trend seen over the past week for both currencies.
Significant Gains for the Dollar and Euro
The dollar saw an increase of 2 pesos in just 24 hours, up from 718 CUP the previous day. A week ago, it was valued at 698 CUP, indicating a rise of 22 pesos—approximately 3.2%—over seven days.
Similarly, the euro experienced a more pronounced surge on Tuesday, rising by five pesos from its previous close of 818 CUP. Over the past week, the euro has climbed from 795 to 823 CUP, an increase of 28 pesos or about 3.5%.
With these gains, both the dollar and the euro have reached their highest values in the last 30 days. Notably, the euro remains the most expensive currency in the informal market, trading 103 pesos higher than the dollar.
MLC Moves in a Different Direction
The freely convertible currency (MLC) recorded a reference value of 493 CUP. However, data for this currency is limited and should be interpreted cautiously. This represents a decline of 11.5 pesos from the previous day and approximately 44 pesos from a week ago, when it was about 537 CUP.
Unlike the physical dollar and euro, the MLC operates as a bank balance used in state-run stores in Cuba's dual currency system.
Informal Market vs. Official Exchange Rate
The informal exchange market continues to offer rates significantly higher than the official rates set by the Central Bank of Cuba for Segment III.
This Tuesday, the official rate was 670 CUP per dollar and 768 CUP per euro, falling short of the rates observed in the informal market by 50 pesos per dollar and 55 pesos per euro.
Despite the introduction of a more flexible exchange scheme in Segment III, informal rates remain a crucial reference for many Cubans seeking foreign currency outside state channels.
Tracking Exchange Rate Trends
Over the past week, the pressure on the Cuban peso is evident, with the dollar appreciating by over 20 CUP and the euro by nearly 30 CUP in just seven days.
The CiberCuba Exchange Rate is an index reflecting the informal Cuban market, compiled through automated analysis of currency trading posts on Telegram and Facebook groups. The system filters out atypical offers and spam, weighting observations by their timeliness to generate representative values updated several times a day.
Here are the currency equivalents based on Tuesday's rates:
U.S. Dollar (USD) to Cuban Peso (CUP)
- 1 USD = 720 CUP
- 5 USD = 3,600 CUP
- 10 USD = 7,200 CUP
- 20 USD = 14,400 CUP
- 50 USD = 36,000 CUP
- 100 USD = 72,000 CUP
Euro (EUR) to Cuban Peso (CUP)
- 1 EUR = 823 CUP
- 5 EUR = 4,115 CUP
- 10 EUR = 8,230 CUP
- 20 EUR = 16,460 CUP
- 50 EUR = 41,150 CUP
- 100 EUR = 82,300 CUP
- 200 EUR = 164,600 CUP
Understanding Cuba's Currency Exchange Dynamics
Why are the dollar and euro rising in Cuba's informal market?
The increase in the dollar and euro rates is due to growing demand for foreign currencies amid economic uncertainty, driving their value higher in the informal market.
What is the difference between the informal and official exchange rates in Cuba?
The informal exchange rates are often higher than the official rates set by the Central Bank, reflecting real-time demand and supply in the market, whereas official rates are controlled by government policy.