The euro is on the brink of reaching 900 Cuban pesos in Cuba's informal currency market, closing this Monday at 885 CUP. Meanwhile, the U.S. dollar is also on an upward trajectory, reaching 788 pesos.
According to data from La Tasa de Cambio de CiberCuba at 8:00 p.m. Cuban time, both currencies have climbed to their highest levels in the past 30 days.
MLC's Continued Decline
In contrast, the Freely Convertible Currency (MLC) is depreciating, now valued at approximately 513 pesos.
The euro ended the day at 885 CUP, up from 878 pesos on Sunday, marking a seven-peso increase in just 24 hours.
Compared to a week ago when it was at 872 pesos, the euro has risen by 13 CUP. It now stands just 15 pesos shy of the 900 CUP milestone, a significant threshold in its valuation.
The euro maintains a 97-peso lead over the U.S. dollar, solidifying its status as the highest-valued currency among the major ones traded in Cuba's informal market.
Dollar's Steady Rise
On the other hand, the dollar closed at 788 CUP, three pesos higher than the previous day's 785.
Over the past week, the greenback has surged from 770 to 788 pesos, an increase of 18 CUP, which translates to roughly 2.3%.
Monthly trends also indicate a notable increase. Thirty days ago, the dollar was approximately 693 pesos, showing a 95 CUP difference from its current rate.
However, caution is advised when interpreting these comparisons due to potential methodological adjustments in the index that could affect recorded fluctuations.
Disparities with Official Rates
The situation diverges for the MLC, showing a downward trend while major foreign currencies continue to rise.
As of this Monday's close, its indicative rate is 513 CUP, down from 535 pesos the previous day, a drop of 22 CUP.
The decline is more pronounced when compared to its value of 578 pesos seven days ago, losing 65 CUP, about 11.2% of its value.
The informal market's behavior also highlights a significant gap compared to the rates from the Central Bank of Cuba (BCC).
Based on Segment III values collected for this day, the official rate for the dollar is 698 CUP and the euro is 781 CUP.
This means the dollar costs 90 pesos more in the informal market, while the euro's difference is 104 CUP.
This gap underscores the disparity between the two exchange rate references, as the population continues to rely on the informal market for currency transactions.
With Monday's closing rates, 100 dollars equate to 78,800 Cuban pesos, and 100 euros amount to 88,500 pesos, according to informal market rates.
Currency Conversion Rates
Equivalence of U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 788 CUP
- 5 USD = 3,940 CUP
- 10 USD = 7,880 CUP
- 20 USD = 15,760 CUP
- 50 USD = 39,400 CUP
- 100 USD = 78,800 CUP
Equivalence of Euro (EUR) to Cuban Peso (CUP):
- 1 EUR = 885 CUP
- 5 EUR = 4,425 CUP
- 10 EUR = 8,850 CUP
- 20 EUR = 17,700 CUP
- 50 EUR = 44,250 CUP
- 100 EUR = 88,500 CUP
- 200 EUR = 177,000 CUP
Understanding the Cuban Informal Currency Market
Why is the euro nearing 900 CUP in the informal market?
The euro's rise to almost 900 CUP is driven by its strong demand and limited supply in Cuba's informal market, where people often turn to buy and sell foreign currency.
How do the informal market rates compare to the official rates?
The informal market rates for both the euro and the U.S. dollar are significantly higher than the official rates set by the Central Bank of Cuba, highlighting the demand and scarcity issues.
What is the current trend for the MLC?
The MLC is experiencing a downward trend, having dropped significantly over the past week, indicating a decrease in its perceived value compared to major foreign currencies.