As the clock strikes 8:00 PM local time in Cuba, the informal currency market concludes its trading session on Thursday, September 10, with mixed results among its primary currencies. The U.S. dollar remains unchanged from the previous session, holding at 688 Cuban pesos, while the euro shows a significant increase, reaching 784 pesos. Meanwhile, the MLC, with limited trading volume at this time, is valued at 474 pesos for reference.
U.S. Dollar Remains Stable
The U.S. dollar closes the day at 688 Cuban pesos (CUP), consistent with the previous day’s rate, marking a peak for the last 30 days. Over the past week, the dollar has risen by 5 pesos from 683 CUP, reflecting a 0.7% increase. Over the month, it has gained 22.5 pesos from 665 CUP, although this should be viewed cautiously as methodological adjustments might influence these figures. The dollar continues to set the pace in the informal market amidst a backdrop of chronic currency shortages.
Euro Gains Ground
Closing at 784 Cuban pesos (CUP), the euro climbs by 6 pesos from the previous day's 778 CUP. Throughout the past week, the euro has appreciated by 11 pesos from 773 CUP, indicating a 1.4% rise. Over the month, it has increased by 16 pesos from 768 CUP, with the highest value recorded at 785 CUP in the last 30 days, just one peso more than today's closing rate. The euro surpasses the dollar by 96 pesos, solidifying its dominant position in Cuba's parallel market.
MLC's Fluctuating Value
The MLC ends the day with a reference value of 474 Cuban pesos (CUP), yet due to limited data in this timeframe, this figure should be interpreted with caution. This reflects an increase of 9 pesos from the previous session's 465 CUP. However, over the last week, the digital currency has dropped by 35.5 pesos from its earlier 509 CUP. Without a physical presence, its usage is confined to state stores that accept it, limiting its circulation compared to cash currencies.
Official Exchange Rates vs. Informal Market
The official exchange rate from Cuba’s Central Bank (Segment III) remains at 651 CUP per dollar and 758 CUP per euro, starkly lower than those prevailing in the daily informal currency market. The gap between official and informal rates exceeds 37 pesos for the dollar and 26 pesos for the euro at today’s close.
Although Segment III was introduced as a more flexible exchange mechanism, its official rates remain far from those in the informal market and fail to meet the population's real currency demands. Notably, the official dollar rate has risen from 624 CUP on August 11 to the current 651 CUP, reflecting a continued depreciation of the peso even officially.
In a context of persistent inflation, low state salaries, and increasing partial dollarization of the economy, any fluctuation in the informal market directly impacts domestic prices and Cuban citizens' purchasing power. The euro’s rise today, coupled with the dollar's stability at its monthly high, heightens the strain on those relying on pesos for their livelihood needs.
The CiberCuba Exchange Rate is an index of the Cuban informal market derived from the automated analysis of thousands of currency buy/sell posts in Telegram and Facebook groups. The calculation filters out atypical offers and spam, weighs each transaction by its age, and consolidates a representative value updated several times daily.
Currency Conversions
U.S. Dollar (USD) to Cuban Peso (CUP) equivalents, based on the exchange rates of Thursday, September 10:
- 1 USD = 688 CUP
- 5 USD = 3,440 CUP
- 10 USD = 6,880 CUP
- 20 USD = 13,760 CUP
- 50 USD = 34,400 CUP
- 100 USD = 68,800 CUP
Euro (EUR) to Cuban Peso (CUP) equivalents, based on the exchange rates of Thursday, September 10:
- 1 EUR = 784 CUP
- 5 EUR = 3,920 CUP
- 10 EUR = 7,840 CUP
- 20 EUR = 15,680 CUP
- 50 EUR = 39,200 CUP
- 100 EUR = 78,400 CUP
- 200 EUR = 156,800 CUP
FAQs About Cuba's Informal Currency Market
Why is there a difference between official and informal exchange rates in Cuba?
The discrepancy is due to the Cuban government's control over official rates, which often do not meet the actual demand and supply dynamics in the informal market, where currencies are traded at values reflecting real economic conditions.
What factors influence the informal currency market in Cuba?
Key factors include currency supply shortages, inflation, government policies, and economic conditions impacting the demand for foreign currencies compared to the Cuban peso.
How does the rise of the euro affect Cubans?
An increase in the euro's rate can lead to higher costs for goods and services priced in euros or linked to the euro, further straining the purchasing power of Cubans who earn in pesos.