The US dollar has breached the 750 Cuban peso mark for the first time, closing at an average of 753 CUP on Tuesday, September 29, in Cuba’s informal currency exchange market.
By 8:00 p.m., the US currency was being bought at 750 CUP and sold at 755 CUP, according to CiberCuba's Exchange Rate.
The Peso's Rapid Decline
This record underscores the rapid depreciation of the Cuban peso in recent days. The dollar surged by eight pesos in just one day, having closed at an average of 745 CUP on Monday.
The increase is even more pronounced when extended over a longer period. A week ago, the dollar stood at 720 CUP, marking a rise of 33 pesos, or approximately 4.6%, in just seven days.
Thirty days ago, the dollar was valued at around 676 CUP. Since then, it has climbed 77 pesos, or about 11.4%, although comparisons over such periods should consider potential methodological adjustments to the index.
Euro Also on the Rise
The euro, meanwhile, ended the day higher, with an average value of 855 CUP, a buying reference of 850, and a selling price of 860 pesos.
The European currency closed the previous day around 850 CUP and was at 823 CUP a week ago. Over the past seven days, it has risen by 32 pesos, or roughly 3.9%.
Compared to the 765 CUP recorded 30 days earlier, the euro's increase is 90 pesos, approximately 11.8%, although this comparison should also be viewed cautiously due to possible methodological adjustments.
Informal Market Divergence
The euro remains the highest-valued currency among the main currencies tracked by the informal market, ending Tuesday 102 pesos above the dollar.
The MLC (Moneda Libremente Convertible) is approximately 500 CUP, with buying references at 445 and selling at 554 pesos. This value should be considered indicative due to the low volume of transactions recorded during this time frame.
Closing reference rates for Tuesday are as follows:
- USD to CUP exchange rate: 753 CUP
- EUR to CUP exchange rate: 855 CUP
- MLC to CUP exchange rate: 500 CUP (indicative value)
The informal market continues to drift away from the official rate set by the Central Bank of Cuba for Segment III.
With official references at 681 CUP per dollar and 775 CUP per euro, the informal market places the dollar 72 pesos higher and the euro 80 pesos higher.
Segment III was introduced by Cuban authorities as a more flexible exchange mechanism, yet the persistent gap indicates that official rates still do not match the prices at which currencies are traded outside state channels.
The demand for dollars and euros remains high in an economy plagued by a shortage of foreign currency, inflation, low wages in national currency, and increasing dollarization. Many Cubans use these currencies to emigrate, import goods, make purchases in the private sector, or attempt to protect their savings against the peso's depreciation.
Tuesday's close marks a new threshold in the Cuban exchange market: for the first time, more than 750 pesos are needed to acquire a dollar in the informal market.
For those earning salaries and pensions in the national currency, each new jump in foreign currency reduces their ability to access goods and services whose prices are directly or indirectly linked to the dollar.
The CiberCuba Exchange Rate is an informal market index created through the automated analysis of thousands of currency buy-sell posts in Telegram and Facebook groups. The calculation excludes atypical offers and spam messages, weighs operations according to their age, and consolidates a representative value updated several times a day.
Currency Conversion Rates
US Dollar (USD) to Cuban Peso (CUP) Conversion:
- 1 USD = 753 CUP
- 5 USD = 3,765 CUP
- 10 USD = 7,530 CUP
- 20 USD = 15,060 CUP
- 50 USD = 37,650 CUP
- 100 USD = 75,300 CUP
Euro (EUR) to Cuban Peso (CUP) Conversion:
- 1 EUR = 855 CUP
- 5 EUR = 4,275 CUP
- 10 EUR = 8,550 CUP
- 20 EUR = 17,100 CUP
- 50 EUR = 42,750 CUP
- 100 EUR = 85,500 CUP
- 200 EUR = 171,000 CUP
Understanding Cuba's Informal Exchange Market
Why has the dollar reached a record high in Cuba's informal market?
The US dollar has reached a record high due to the rapid depreciation of the Cuban peso, driven by economic factors such as inflation, low wages, and a shortage of foreign currency in Cuba.
How does the CiberCuba Exchange Rate work?
The CiberCuba Exchange Rate is created through automated analysis of currency trading posts on social media, excluding atypical offers and spam, and is updated several times a day to reflect market trends.
What is the significance of the gap between informal and official exchange rates?
The gap highlights the divergence between state-controlled exchange rates and the market's actual trading values, showing the limitations of official economic policies in managing currency value.
How does the rising exchange rate affect the average Cuban citizen?
For Cubans earning in national currency, rising foreign exchange rates reduce purchasing power, making it harder to access goods and services priced in dollars or euros.