Cuba's informal currency market witnessed a continued decline in both the U.S. dollar and the euro this Monday, marking two consecutive days of losses for these foreign currencies.
The euro experienced the most notable drop, further distancing itself from the symbolic threshold of 1,000 Cuban pesos.
Based on the informal exchange rate at 8:00 PM Cuban local time, the dollar was valued at 914 Cuban pesos (CUP), a reduction of seven pesos from its previous rate of 921 CUP on Sunday.
The euro concluded the day at 975 CUP, noting a 22-peso decrease from the prior day’s 997 CUP.
This trend extends the downturn seen on Sunday, when the dollar shed 12 pesos and the euro fell by 13 pesos, following a period of rising foreign currency costs against the Cuban peso.
The dollar started the day at approximately 920 CUP and closed six pesos lower. Despite the recent drop, it remains above the 903 CUP level recorded a week ago, reflecting a weekly gain of about 11 pesos.
Over the past month, the dollar has fluctuated, reaching highs of 940 CUP and lows around 783 CUP. Even with the recent declines, it's still significantly higher than it was 30 days ago.
The euro also opened at a lower rate of 988 CUP on Monday morning. By the end of the day, it had fallen an additional 13 pesos, settling at 975 CUP.
The euro has lost roughly 11 pesos over the past week compared to its value of 986 CUP seven days ago. Nonetheless, it remains above its position a month ago when it was around 877 CUP.
Although the euro continues to be 61 pesos higher than the dollar, both currencies have depreciated over the past 48 hours, making it difficult to predict a sustained trend change in the unofficial market.
Meanwhile, the MLC (Freely Convertible Currency) closed at approximately 691 CUP, an increase of eight pesos from Sunday’s rate of 683 CUP.
Throughout the last week, its reference value surged by 79 pesos from 612 CUP, marking a rise of about 12.9%.
Unlike the dollar or euro, the MLC does not circulate as physical currency. It’s used electronically in specific state-run stores, which differentiates its trading conditions from cash transactions.
In contrast, the official exchange rate set by the Central Bank of Cuba for Segment III remains at 800 CUP per dollar and 892.04 CUP per euro this Monday, well below the informal market rates.
The disparity reaches 114 pesos for the dollar and about 83 pesos for the euro, highlighting the gap between the official rates and the black market transactions.
Exchange Rates for U.S. Dollars (USD) to Cuban Pesos (CUP) as of this Monday:
- 1 USD = 914 CUP
- 5 USD = 4,570 CUP
- 10 USD = 9,140 CUP
- 20 USD = 18,280 CUP
- 50 USD = 45,700 CUP
- 100 USD = 91,400 CUP
Exchange Rates for Euros (EUR) to Cuban Pesos (CUP) as of this Monday:
- 1 EUR = 975 CUP
- 5 EUR = 4,875 CUP
- 10 EUR = 9,750 CUP
- 20 EUR = 19,500 CUP
- 50 EUR = 48,750 CUP
- 100 EUR = 97,500 CUP
- 200 EUR = 195,000 CUP
Understanding Cuba's Informal Currency Market
Why is there an informal currency market in Cuba?
Cuba's informal currency market exists due to restrictions and the disparity between official exchange rates and actual market demands, leading to a parallel market where currencies are traded at different rates.
What factors influence the exchange rates in Cuba's black market?
Exchange rates in Cuba's black market are influenced by supply and demand dynamics, economic policies, international relations, and the overall economic situation in the country.
How does the MLC differ from other currencies in Cuba?
The MLC is a digital currency used in specific state-run stores in Cuba, unlike the physical forms of the dollar and euro, making its trading conditions unique compared to cash transactions.