The informal currency market in Cuba has witnessed another surge in the value of the U.S. dollar and the euro as of 10:00 a.m. local time on Tuesday, September 29. This trend continues to put pressure on the already struggling Cuban economy.
Rising Dollar and Euro Rates
On the latest session, the U.S. dollar opened trading at 748 Cuban pesos (CUP), a five-peso increase from the previous day's close. Simultaneously, the euro jumped to 852 pesos, marking a similar five-peso gain.
Meanwhile, the MLC (Moneda Libremente Convertible) shows a drop, but due to limited data availability at this hour, its figures should be approached cautiously.
Informal Market Exchange Rates
The exchange rates in the informal market reveal a significant divergence from official figures:
- USD to CUP: 748 CUP
- EUR to CUP: 852 CUP
- MLC to CUP: 508 CUP (indicative value, limited data)
Dollar Reaches Monthly High
The U.S. dollar has reached a 30-day high, trading at 748 CUP. This represents a consistent upward trend, with an increase of five pesos from the previous session. Over the past week, the dollar has climbed 30 pesos from 718 CUP, reflecting a 4.2% rise.
Comparing monthly data, the dollar was valued at 675 pesos 30 days ago. The current 73-peso increase—equating to a 10.7% rise—highlights both market movements and potential methodological adjustments in the index. The current rate underscores the dollar's dominance, exerting significant pressure on the Cuban peso.
Euro Hits Monthly Peak
The euro also reached a peak, opening at 852 CUP, surpassing its prior session value by five pesos. Over the past week, the euro has gained 31.5 pesos from 821 CUP, a 3.8% increase.
In a monthly comparison, the euro has risen 89.5 pesos from its value of 763 pesos 30 days ago, marking an 11.7% increase. Like the dollar, this change may include methodological adjustments. Today's value sets a new high for the euro over the past 30 days, outpacing the dollar by 104 pesos, driven by limited supply and demand from remittances from Europe.
MLC's Indicative Decline
The MLC stands at an average of 508 CUP, with limited data available. This reflects a 25-peso fall from the previous day, a 4.7% decrease. Over the past week, however, the MLC has seen a slight increase of 6.5 pesos from 502 CUP. A month ago, it was at 468 pesos, with a 30-day high of 547 CUP. Its use remains confined to state stores accepting it, limiting its circulation compared to hard currency.
Widening Gap with Official Rates
The official exchange rates set by the Central Bank of Cuba (Segment III) remain substantially lower than informal market rates, with the dollar at 681 CUP and the euro at 775 CUP. The disparity today reaches 67 pesos for the dollar and 77 pesos for the euro, showing a clear disconnect between the official economy and everyday reality for Cubans.
Although Segment III was intended to offer a more flexible exchange mechanism, its official rates remain far from reflecting the true demand for currency among the population.
In the past month, official rates have seen the dollar rise from 634 to 681 CUP and the euro from 735 to 775 CUP, indicating a slower depreciation of the peso compared to the parallel market.
Informal Market: A Real Economic Indicator
In an environment characterized by persistent inflation, low government wages, and increasing dollarization, fluctuations in the informal market directly impact domestic prices and the purchasing power of Cubans.
The concurrent rise of the dollar and euro on this Tuesday morning reinforces the upward trend seen in recent weeks, further straining the purchasing power of those earning in Cuban pesos.
The informal currency market operates outside state financial institutions, relying on networks of private transactions. While not officially recognized by the Cuban government, it effectively determines the real purchasing power of Cubans.
Here are dollar and euro equivalents in Cuban pesos as per this Tuesday's rates:
- 1 USD = 748 CUP
- 5 USD = 3,740 CUP
- 10 USD = 7,480 CUP
- 20 USD = 14,960 CUP
- 50 USD = 37,400 CUP
- 100 USD = 74,800 CUP
- 1 EUR = 852 CUP
- 5 EUR = 4,260 CUP
- 10 EUR = 8,520 CUP
- 20 EUR = 17,040 CUP
- 50 EUR = 42,600 CUP
- 100 EUR = 85,200 CUP
The exchange rate index by CiberCuba is based on automated analysis of thousands of currency exchange posts on Telegram and Facebook groups. It excludes atypical offers and spam, weighting each transaction by age to provide a representative value updated multiple times daily.
FAQ on Currency Rates in Cuba's Informal Market
Why are the informal market rates higher than the official rates in Cuba?
The informal market rates are driven by actual supply and demand, reflecting the true economic conditions faced by Cubans. The official rates are set by the government and do not accommodate the real demand for foreign currency.
How does the informal currency market impact Cuban citizens?
Fluctuations in the informal currency market affect the cost of goods and services, as well as the purchasing power of Cubans, who rely on the informal rates to gauge their financial reality.
What is the current rate of the U.S. dollar in Cuba's informal market?
As of the latest report, the U.S. dollar is trading at 748 Cuban pesos in the informal market.