As the informal currency exchange market in Cuba opened this Friday, both the U.S. dollar and the euro maintained their previous rates, showcasing a period of stability for these major foreign currencies.
The exchange rate for the U.S. dollar remained steady at 665 Cuban pesos, while the euro held firm at 760 pesos. In contrast, the MLC (Freely Convertible Currency) saw a slight increase, reaching 457 pesos.
Data collected by CiberCuba indicates that the dollar and euro are repeating their average values from the previous day. Conversely, the MLC rose from 450 to 457 pesos, marking a 6.5 peso increase, equivalent to a 1.4% rise.
Recent Trends and Weekly Changes
This current calm follows a period where both the dollar and, more significantly, the euro experienced declines. A week ago, the dollar averaged 673 pesos, now standing 7.5 pesos lower, reflecting a 1.1% drop.
The euro's depreciation is even more pronounced, having fallen from 784 pesos to approximately 760 pesos over the past week, a decrease of 23.5 pesos or about 3%.
The MLC, however, has taken a different trajectory. Its indicative value was 446 pesos a week ago, and it has since climbed 10.5 pesos, a 2.4% increase.
Monthly Comparison and Market Movements
Looking back over the last month paints a different picture. The dollar, which was at 655 pesos 30 days ago, now sits 10 pesos higher, marking a 1.5% increase. During this period, it fluctuated between a low of 655 and a high of 675 pesos.
A month ago, the euro was priced at 755 pesos, just five pesos less than its current rate. The monthly change is about 0.7%, with fluctuations ranging from 755 to 790 pesos in the past 30 days.
The MLC has shown the most notable change during this time. Thirty days ago, it was valued at 488 pesos, compared to 457 pesos now, signifying a drop of 31 pesos or 6.4%. Over the month, it varied between 413 and 496 pesos.
It's important to interpret these monthly comparisons cautiously, as some discrepancies over the 30-day period may be due to adjustments in the methodology used to compile the index, rather than purely market movements.
Official vs. Informal Exchange Rates
The official exchange rates set by the Central Bank of Cuba for Segment III, as of August 14, 2023, list the dollar at 624 CUP and the euro at 720 CUP. This positions the informal dollar rate 41 pesos higher than the official reference and the euro 40 pesos higher. The MLC lacks a comparable official rate.
Currency Equivalents in Cuban Pesos
Based on the average rate of 665 CUP per dollar, the informal market conversions are approximately as follows:
- 1 USD = 665 CUP
- 5 USD = 3,325 CUP
- 10 USD = 6,650 CUP
- 20 USD = 13,300 CUP
- 50 USD = 33,250 CUP
- 100 USD = 66,500 CUP
For the euro, with an average rate of 760 CUP, the conversions are:
- 1 EUR = 760 CUP
- 5 EUR = 3,800 CUP
- 10 EUR = 7,600 CUP
- 20 EUR = 15,200 CUP
- 50 EUR = 38,000 CUP
- 100 EUR = 76,000 CUP
- 200 EUR = 152,000 CUP
- 500 EUR = 380,000 CUP
The MLC remains a digital-only currency, so there are no physical bills or equivalences for different denominations.
Understanding the Currency Market in Cuba
Why is the MLC gaining value while the dollar and euro remain stable?
The MLC's increase could be attributed to a shift in demand or changes in the economic policies affecting its stability. Unlike the dollar and euro, the MLC's digital nature and its specific use cases can drive its value independently.
How do the official and informal exchange rates differ in Cuba?
The Central Bank of Cuba sets official exchange rates, which are often lower than those in the informal market. This discrepancy arises from the controlled nature of the official rates compared to the supply and demand dynamics influencing the informal market.