This Thursday, euros and dollars wake up with another sharp decrease in their average selling value in the Cuban informal market, consolidating the decline that both currencies have been experiencing since mid-month.
Especially relevant is the drop of 8 pesos in the informal exchange rate of the euro, which at 7 a.m. on May 23 (local Cuban time) appears with an average selling price of 370 CUP.
On its part, the dollar falls five pesos again, as it has been doing consistently since May 16th, dropping from 365 to 360 pesos.
The US dollar has dropped by 35 pesos in eight days of constant decline.
The Freely Convertible Currency (MLC) is the only one that shows some stability, as it remains fixed at 300 pesos, a price it has held for several days.
Exchange rate today 05/23/2024 - 7:03 a.m. in Cuba:
Exchange rate of the USD to CUP according to elTOQUE: 360 CUP.
Euro to CUP exchange rate according to elTOQUE: 370 CUP.
Exchange rate from MLC to CUP according to elTOQUE: 300 CUP.
Alternative exchange rate from other platforms:
Dollar exchange rate (USD): Buying 353 CUP, Selling 362 CUP.
Euro exchange rate (EUR): Buy 365 CUP, Sell 374 CUP.
Exchange rate of the MLC: Buy 293 CUP, Sell 299 CUP.
The unofficial exchange rate of Cuba offered here is not officially recognized or endorsed by any financial or governmental entity.
The equivalences of each available euro and US dollar bill to Cuban pesos (CUP) are detailed below, according to the exchange rates of this Thursday, May 23rd.
United States Dollar (USD) to Cuban Peso (CUP):
1 USD = 360 CUP.
5 USD = 1,800 CUP.
10 USD = 3,600 CUP.
20 USD = 7,200 CUP.
50 USD = 18,000 CUP.
100 USD = 36,000 CUP.
Euro (EUR) to Cuban Peso (CUP):
1 EUR= 370.
5 EUR = 1,850 CUP.
10 EUR = 3,700 CUP.
20 EUR = 7,400 CUP.
50 EUR = 18,500 CUP.
100 EUR = 37,000 CUP.
This information can be useful for calculating the cost in Cuban pesos of any amount of dollars or euros. These conversions are based on the provided rates of 360 CUP per dollar and 370 CUP per euro.
Is the Cuban peso really appreciating these days?
The independent media outlet elToque gave its opinion on the sharp decline that the value of dollars, euros, and MLC has experienced in the last week and mentioned some factors that could be influencing the fall in the price of currencies, although it does not consider that what we are seeing implies a real revaluation of the national currency.
In his analysis, the article published by Pavel Vidal Alejandro considers that one of the causes could be the so-called "market sentiment," meaning that "a growing number of people began to consider that the price of currencies was excessively high and chose to sell before a possible drop," which triggered the supply.
Pavel Vidal stated that since mid-May - coinciding with the beginning of the decline of the three reference currencies - there was a noticeable increase in the supply of foreign exchange in the monitored sample in virtual spaces.
On the other hand, ElToque pointed out that it is normal for "temporary corrections to occur after an extended bullish period in the market" and emphasized that since 2022, there have been six pronounced and consecutive drops in currency values, which have lasted in some cases for weeks, but then they have recovered.
However, the economic analyst estimates that the fundamental factors explaining the internal and external imbalances of the Cuban economy have not changed, and therefore "the current inflection of the rate should not be associated with a modification of the long-term trend."
"The high fiscal deficit, excessive issuance of Cuban pesos, contraction of domestic production and exports, growing dependence on imported goods and inputs, dollarization, emigration, and general and persistent inflation in the markets persist," meaning the crisis continues, and there is no reason for the peso to change its devaluation trend.
Is it possible to know for certain what will happen? ElToque also finds this complicated because it considers that "there are many information gaps that make it difficult to measure with greater precision the magnitude and evolution of the current crisis."
Only the government has economic policy tools (especially fiscal and monetary) and can implement reforms to stabilize and change the course of the exchange rate. Until it does so, the exchange rate will continue to reflect the price of immobilism, continuism, and uncertainty," they concluded.
Another point of view on the collapse of currencies in Cuba
The Cuban economist Emilio Morales stated this week in an interview with CiberCuba that it is "impossible" for the Cuban peso to have revalued on its own, gaining ground against the dollar, as has happened in recent days, and attributed the fall in the informal exchange rate of currencies to maneuvers by the cyber brigades of the UCI (University of Computer Sciences) on the island.
According to Emilio Morales, the only news that could revalue the peso by itself is "the Government has fallen" because it would finally open up hope for a change in the system.
Morales also ruled out that the decrease in the price of dollars, euros, and MLC in Cuba is due to a supposed injection of foreign currency in the informal market.
What do you think?
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