After two days of stability, Cuba's informal currency market is once again showing signs of instability this Monday. The subtle rise of two units for the United States dollar (USD) in the informal market now places its rate at 362 Cuban pesos (CUP).
In contrast, the euro experienced a significant drop of five pesos, bringing its value down to 370 CUP. The freely convertible currency (MLC) remains unchanged, holding steady at 300 CUP.
The "miraculous static" or relative stability achieved over the past two days threatens to collapse, further exacerbating the decline of the national currency, which has become nearly worthless in the pockets of Cuban families.
The volatility of the informal currency market and the passivity of a government unable to establish economic and monetary order leave Cubans on edge. Although the two-peso increase in the dollar's price and the drop in the euro may seem modest, they hint at a new wave of fluctuations in currency rates.
Among the "new economic actors," remittance recipients, and black market operators, many foresee further hikes in currency prices due to the absence of "corrections" and economic and monetary policies aimed at stabilizing the peso against foreign currencies.
Exchange Rates Today: 06/24/2024 - 7:12 AM in Cuba
Exchange rate of USD to CUP according to elTOQUE: 362 CUP
Exchange rate of EUR to CUP according to elTOQUE: 370 CUP
Exchange rate of MLC to CUP according to elTOQUE: 305 CUP
These values provide a quick reference for converting US dollars and euros into Cuban pesos according to the current informal exchange rate.
Understanding Cuba's Informal Currency Market
Here are some frequently asked questions to better understand the dynamics of Cuba's informal currency market.
Why is the Cuban currency market volatile?
The volatility is largely due to the lack of effective economic and monetary policies by the government, which fails to stabilize the national currency against foreign currencies.
What factors influence the informal exchange rates in Cuba?
Factors include the demand and supply of foreign currencies, remittances from abroad, and the activities of black market operators.
How do these exchange rates affect ordinary Cubans?
Fluctuations in exchange rates can significantly impact the purchasing power of ordinary Cubans, making it difficult for them to afford basic goods and services.
Is there a way to stabilize the Cuban peso?
Stabilizing the Cuban peso would require comprehensive economic reforms and effective monetary policies aimed at boosting the national economy and managing currency supply.