In Cuba's informal currency market, the euro has seen a slight uptick as trading opened at 10:00 a.m. local time on Thursday, July 30. While the euro shows some movement, the U.S. dollar remains unchanged compared to the previous day, and the MLC's movement is minimal, reflecting its low trading volume.
The complete evolution of exchange rates in Cuba's informal market can be tracked for a deeper understanding of these fluctuations.
Exchange Rates Overview
USD to CUP: 673 CUP
EUR to CUP: 786 CUP
MLC to CUP: 478 CUP (indicative value)
Stability of the U.S. Dollar
The U.S. dollar is currently valued at 673 Cuban pesos (CUP) in the informal market, with buying and selling rates around 670 and 675 CUP, respectively. This represents no change from the previous day.
When viewed over a week, the dollar has risen by 2 pesos from 671 CUP, marking an increase of 0.2%. Over the past month, the dollar has climbed 57.5 pesos from 615 CUP, translating to a 9.3% increase, though this should be considered with caution due to potential methodological adjustments and actual market trends.
In the last 30 days, the dollar's value has fluctuated between 615 CUP and 675 CUP, highlighting the ongoing foreign currency shortage in Cuba's informal market.
The Euro's Ascent
The euro is the standout currency in today's market. It is trading at 786 CUP, with buying and selling rates at 780 and 791 CUP, respectively. This marks a 1 peso increase from the previous day.
Over the past week, the euro has gained 7.5 pesos from 778 CUP, a 1% rise. Compared to its value of 702 CUP a month ago, the euro has surged by 84 pesos, or 12%, although this increase may include index adjustments.
In the past month, the euro's value has ranged between 700 CUP and 790 CUP, currently outpacing the dollar by 113 pesos, solidifying its dominance in Cuba's parallel market.
MLC's Indicative Value
The MLC is priced around 478 CUP today, with buying and selling figures at 449 and 507 CUP. It remains virtually unchanged from the prior session.
It's important to note that this is an indicative figure, as MLC trades in low volumes. Over the past week, MLC has decreased by 2 pesos from 480 CUP. A month ago, it stood at 447 CUP, marking a 31-peso increase, which may also reflect index adjustments.
This digital currency, lacking physical presence, is primarily used in state-run stores, limiting its circulation compared to cash currencies.
Disparity Between Informal and Official Rates
The official exchange rate from the Central Bank of Cuba (Segment III) stands at 608 CUP per dollar and 692 CUP per euro, significantly lower than the rates in Cuba's informal currency exchanges.
There is a gap of over 65 pesos for the dollar and 94 pesos for the euro between the official and informal markets. Despite Segment III's intended flexibility, its official rates remain far from meeting the real demand for foreign currency among Cubans.
In July, the official dollar rate increased from 589 to 608 CUP, and the euro went from 673 to 692 CUP, yet these adjustments have not bridged the gap with the parallel market.
Context of the Informal Market
The continuing divergence between official and informal rates highlights the persistent foreign currency scarcity in state banks and the high demand for dollars and euros among Cubans, whether for emigration, importing goods, saving, or private sector transactions.
In a setting marked by persistent inflation, low state wages, and increasing dollarization, any shift in the informal market directly influences domestic prices and the purchasing power of Cubans.
Currency Equivalency
USD to CUP Equivalency:
1 USD = 673 CUP
5 USD = 3,365 CUP
10 USD = 6,730 CUP
20 USD = 13,460 CUP
50 USD = 33,650 CUP
100 USD = 67,300 CUP
EUR to CUP Equivalency:
1 EUR = 786 CUP
5 EUR = 3,930 CUP
10 EUR = 7,860 CUP
20 EUR = 15,720 CUP
50 EUR = 39,300 CUP
100 EUR = 78,600 CUP
200 EUR = 157,200 CUP
Methodology
The CiberCuba Exchange Rate Index is a measure of Cuba's informal market derived from automated analyses of thousands of currency trading posts on Telegram and Facebook. It excludes atypical offers and spam, weighs each trade by its recency, and consolidates a representative value updated multiple times daily.
Frequently Asked Questions About Cuba's Informal Currency Market
Why is there a gap between official and informal exchange rates in Cuba?
The gap exists due to the persistent scarcity of foreign currency in Cuba's state banks and the high demand for dollars and euros among the population, which the official rates fail to meet.
What factors influence the fluctuations in Cuba's informal currency market?
Fluctuations are influenced by ongoing foreign currency shortages, inflation, low state wages, and increasing dollarization, all of which affect supply and demand dynamics.