The euro is on the verge of reaching 1,000 CUP in Cuba's informal market, just 17 pesos shy, while the U.S. dollar is only five pesos short of 900. Both currencies saw an upward trend this past Sunday, recording new highs for the month.
According to CiberCuba Exchange Rate, as of 8:00 p.m. local time, the euro was trading at 983 Cuban pesos, and the dollar stood at 895 CUP. Meanwhile, the MLC (Freely Convertible Currency) registered a value of 564 CUP.
The euro experienced the most significant increase since Saturday's close, climbing from 970 to 983 CUP, marking an increase of 13 pesos in just one day. This rise brings the European currency closer to the 1,000-peso mark, a figure it has yet to achieve in this timeframe.
While the dollar also saw gains, its rise was more modest, increasing by five pesos from Saturday's 890 CUP to 895 CUP by the end of Sunday.
Weekly Currency Movements
A weekly comparison highlights the pace of these increases. Seven days ago, the dollar was at 838 CUP, accumulating a rise of 57 pesos or 6.8%. In the same period, the euro rose from 930 to 983 CUP, a gain of 53 pesos, approximately 5.7%.
The gap between the two currencies widened as well. By the close of Sunday, a euro was worth 88 pesos more than a dollar in the informal market.
Daily Trading Insights
Morning trading hinted at a day of gains. By 10:00 a.m., the dollar was at 894 CUP, and the euro at 971 CUP. As the day progressed, the U.S. currency added another peso, while the European currency gained an additional 12.
Over the past 30 days, the dollar has fluctuated between a low of 768 CUP and the high of 895 CUP reached this Sunday. The euro has moved between 860 and 983 CUP, also hitting its highest value during this period.
These numbers reflect the range of exchange rates over the past month. They should not be automatically interpreted as accumulated gains over exactly 30 days since long-term comparisons may be affected by methodological adjustments in the indicator.
MLC and Official Exchange Rates
Meanwhile, the MLC stood at 564 CUP. Its rate is indicative due to the limited volume of offers available. Unlike the physical dollar and euro, the MLC is an electronic balance used in state-run stores that still accept this payment method.
Informal market rates remain significantly higher than those set by the Central Bank of Cuba for Segment III. This Sunday, the official reference exchange rate was 768 CUP per dollar and approximately 857 CUP per euro.
The disparity between these references reached 127 pesos per dollar and about 126 pesos per euro. Although the official system incorporates adjustments to its rates, a significant gap persists compared to the prices seen in informal exchanges.
Impact on Daily Life
For those receiving remittances or needing to purchase foreign currency, this difference has real consequences. With Sunday's closing rates, 100 dollars equate to 89,500 Cuban pesos, while 100 euros equal 98,300 CUP. Conversely, acquiring these amounts of currency requires increasingly larger sums of national currency.
In an economy characterized by low salaries in Cuban pesos, inflation, and a growing presence of foreign currency-denominated commerce, the rise in these rates puts additional pressure on those relying solely on CUP income.
The CiberCuba Exchange Rate is an indicative index of the informal market developed through automated analysis of currency trading posts in Telegram and Facebook groups. Its values are updated periodically and do not equate to an official bank rate nor guarantee all private transactions occur at these prices.
FAQs on Currency Exchange in Cuba
Why are the informal market rates higher than official rates?
The informal market rates are higher due to supply and demand dynamics not reflected in the official rates. The scarcity of foreign currency and higher demand influences these elevated rates.
What does MLC stand for, and how is it used?
MLC stands for "Moneda Libremente Convertible" or Freely Convertible Currency. It is an electronic balance used in some state-run stores in Cuba that accept this payment method instead of physical cash.
How does the exchange rate impact everyday life in Cuba?
The exchange rate affects the purchasing power of those earning in Cuban pesos. As foreign currency becomes more expensive, it increases the cost of imported goods and services, impacting daily expenses and savings.