Dollar Soars 10 Pesos in Under Six Hours in Cuba’s Informal Market
The chaos seems to have broken loose in Cuba’s informal currency market. This Saturday, the U.S. dollar surged by 10 pesos in less than six hours.
Between 6:00 AM and 11:47 AM on the same day, the U.S. dollar saw a dramatic increase of 10 pesos, positioning its informal exchange rate at 390 Cuban pesos (CUP). If at the start of the day, the informal market indicated the dollar was trading at 380 CUP—just 15 pesos below its all-time high from May 10—within six hours, the “greenback” shot up to 390 CUP.
At the time of writing this note, the other two benchmark currencies in Cuba’s informal market showed no signs of change, maintaining their values from the beginning of the day. The euro remains at 400 CUP, close to its historical high of 402.5 CUP also reached on May 10, and the freely convertible currency (MLC) stays static at 300 CUP, ten pesos below the all-time high achieved on May 14.
Current Exchange Rates as of 06/08/2024 – 11:47 AM in Cuba:
USD to CUP exchange rate according to elTOQUE: 390 CUP
EUR to CUP exchange rate according to elTOQUE: 400 CUP
MLC to CUP exchange rate according to elTOQUE: 300 CUP
Alternative exchange rates from other platforms:
USD to CUP: Buy at 359 CUP, Sell at 381 CUP
EUR to CUP: Buy at 370 CUP, Sell at 398 CUP
MLC to CUP: Buy at 291 CUP, Sell at 298 CUP
Clearly, the behavior of the informal currency market in Cuba over the past 72 hours is a stark indicator of its instability, as well as the rapid decline in the value of the national currency and the purchasing power of millions of Cubans.
Understanding the Surge in Cuba’s Informal Currency Market
To provide further context and clarity on the recent developments in Cuba’s informal currency market, here are some frequently asked questions and their answers:
Why did the U.S. dollar increase so rapidly in Cuba’s informal market?
The rapid increase can be attributed to a combination of economic instability, government policies, and a decline in the value of the national currency, leading to higher demand for more stable foreign currencies.
How does the current exchange rate impact the daily lives of Cubans?
The declining value of the Cuban peso reduces the purchasing power of Cubans, making it more difficult to afford basic necessities and imported goods, which are often priced in foreign currencies.
What are the alternative exchange rates mentioned in the article?
Alternative exchange rates are provided by other platforms and can differ from those reported by elTOQUE. These rates reflect the prices at which people are willing to buy and sell currencies, offering a more comprehensive view of the market.
What is the historical significance of the current exchange rates?
The current exchange rates are significant as they approach or surpass previous historical highs, indicating severe economic distress and a weakening national currency.
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