This Monday's fluctuations in the exchange rates of foreign currencies in Cuba's informal market have sparked a new wave of instability in the prices of the U.S. dollar and the euro. On the previous day, the U.S. dollar (USD) saw a modest increase of two Cuban pesos (CUP), but by Tuesday, it had jumped by three units, reaching a value of 365 CUP.
In less than 24 hours, the price of the euro dropped by five Cuban pesos and then recovered, settling at 375 CUP. Meanwhile, the freely convertible currency (MLC) also experienced minor fluctuations in the past hours, trading at 300 CUP on Tuesday.
The representative rate of the informal market calculated by elTOQUE provides reference values and is derived from the median of numbers posted in buy-and-sell advertisements on social media groups and classified sites.
The "miraculous stability" or relative calm achieved in recent days now threatens to collapse, further accentuating the decline of the national currency, which has been devalued and turned into worthless paper in the pockets of Cuban families.
The volatility of the informal currency market and the inaction of a government unable to impose order on its economic and monetary policies keep Cubans on edge. Among the "new economic actors," remittance recipients, and black market operators, many foresee further increases in currency prices given the absence of "corrections" and economic and monetary policies aimed at halting the devaluation of the national currency and achieving stability of the peso against foreign currencies.
Exchange rates as of 06/25/2024 - 6:42am in Cuba:
USD to CUP exchange rate according to elTOQUE: 365 CUP
EUR to CUP exchange rate according to elTOQUE: 375 CUP
MLC to CUP exchange rate according to elTOQUE: 300 CUP
These values provide a quick reference for converting U.S. dollars and euros to Cuban pesos based on the current informal exchange rate.
Understanding Cuba's Informal Exchange Market
For those interested in the dynamics of Cuba's informal exchange market, here are some key questions and answers that provide further insight.
What factors are causing the volatility in Cuba's informal exchange market?
The volatility is largely driven by the Cuban government's inability to implement effective economic and monetary policies, coupled with the demand for foreign currencies in an unstable economic environment.
How does the informal exchange rate affect Cuban citizens?
The fluctuating exchange rates make it difficult for citizens to plan financially and can severely impact their purchasing power, especially since the national currency has been significantly devalued.
What is the role of elTOQUE in the informal exchange market?
elTOQUE calculates and publishes reference values for the informal exchange rates based on median prices from social media and classified ads, providing a valuable benchmark for Cubans dealing in foreign currencies.