In a new chapter of a story that seems to have no end, this Friday, two of the three benchmark currencies in the informal Cuban market dawn with price increases.
The euro rises from 400 to 402.5 CUP, with an increase of 2.5 pesos, according to elToque's documentation today on the daily rate that reports fluctuations in currency prices in the informal market.
On the other hand, the average trading price of the Freely Convertible Currency (MLC) rose by five pesos suddenly, which, after remaining at 300 pesos for six days, is now valued at 305 CUP.
Only remaining stable this May 10th is the dollar, which continues at 395 CUP per unit, a value it reached in the previous session.
Exchange rate today 10/05/2024 - 7:35 a.m. in Cuba:
Exchange rate of the USD to CUP according to elTOQUE: 395 CUP.
Exchange rate of the euro EUR to CUP according to elTOQUE: 402.5 CUP.
Exchange rate from MLC to CUP according to elTOQUE: 305 CUP.
Alternative exchange rate from other platforms:
Exchange rate of the dollar (USD): Buy 391 CUP, Sell 393 CUP.
Exchange rate of the Euro (EUR): Buy 400 CUP, Sell 400 CUP.
Exchange rate for MLC: Buy at 301 CUP, Sell at 301 CUP.
The informal exchange rate in Cuba provided here is not officially recognized or backed by any financial or governmental entity.
The Cuban peso continues its relentless march towards the abyss
A detailed article published yesterday by elToque describes what it calls "strong turbulence" experienced by the exchange market in Cuba in April.
"April 2024 marked a peak in the devaluation of the Cuban peso," stated elToque, noting that last month's escalation in informal exchange rates represents the largest monthly depreciation of the Cuban peso so far this year.
In percentage terms, in April the Cuban peso depreciated by more than 13% relative to the dollar and the euro, and by more than 5% against the MLC.
During April, on three occasions the rate increased by 5 CUP in a single day against the dollar and twice against the euro.
According to analysts from the Observatory of Currency and Finance of Cuba (OMFi), the rapid depreciation of the Cuban peso in April was due to four factors that are part of the economic and financial crisis the country is experiencing: "rising inflation, stagnation in production and exports, high fiscal deficit, and emigration."
In the first quarter of 2024, the categories of food, transportation, and alcoholic beverages registered the most significant increases, with inflation rates considerably higher than the general CPI.
Another cause of the devaluation of the Cuban peso would be the sluggish recovery of tourism, that exports of goods have fallen short of expectations, and that the sugar harvest continues to fail to stabilize its production, the cited independent media emphasizes.
According to elToque, the migratory wave would also be an aggravating factor that shows no signs of abating and that entails an additional demand for foreign currency in the informal market.
Tendency towards devaluation could persist for the remainder of May.
OMFi models "anticipate that the depreciation trend could continue in May and forecast that the informal exchange rate could be around 417-427 CUP per dollar, 422-433 CUP per euro, and 316-324 CUP per MLC by the end of the month.
However, they also suggest that a decrease in the rate of devaluation of the peso is likely in the coming months.
As the informal exchange rate of currencies continues to soar in Cuba, inflation also remains unchecked, leaving a bleak panorama in which Cubans see their purchasing power diminish day by day.
In the midst of this scenario, the Cuban regime seems to be caught in a dead end, incapable of offering economic solutions to the problem and choosing to blame elToque for the devaluation of the CUP.
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