This Friday, the average selling price of the three reference currencies in the Cuban informal market decreases.
After several days at 300 pesos, the Freely Convertible Currency (MLC) joins the descent and drops to 295, five units less than its value of the last... days.
Dollars and euros, on the other hand, also drop five pesos.
The US dollar falls to 355 and the euro to 365, according to the values recorded at 7 in the morning on this May 24 (Cuban local time).
They currently maintain a ten-peso difference between them. This Friday confirms the setback that currencies have been experiencing since mid-month.
The American currency has dropped 40 pesos in nine consecutive days of decline.
Although many Cubans consider the fall in the informal price of currencies in Cuba positive for their pockets, they wonder why consumer goods prices do not also decrease, which they consider a fair coherence in the current circumstances.
Exchange rate today 05/24/2024 - 7:00 a.m. in Cuba:
Exchange rate of the USD to CUP according to elTOQUE: 355 CUP.
Euro exchange rate EUR to CUP according to elTOQUE: 365 CUP.
Exchange rate from MLC to CUP according to elTOQUE: 295 CUP.
Alternative exchange rate from other platforms:
Exchange rate for the dollar (USD): Buying 349 CUP, Selling 356 CUP.
Euro exchange rate (EUR): Buy 359 CUP, Sell 365 CUP.
Exchange rate of the MLC: Buying 292 CUP, Selling 298 CUP.
The informal exchange rate of Cuba offered here is not officially recognized or supported by any financial or governmental entity.
Below are the equivalences of each available euro and US dollar bill to Cuban pesos (CUP), according to the exchange rates of this Thursday, May 23rd.
United States Dollar (USD) to Cuban Peso (CUP):
1 USD: 355 CUP
5 USD: 1,775 CUP
10 USD: 3,550 CUP
20 USD: 7,100 CUP
50 USD: 17,750 CUP
100 USD: 35,500 CUP
Euro (EUR) to Cuban Peso (CUP):
1 EUR: 365.
5 EUR: 1,825 CUP.
10 EUR: 3,650 CUP.
20 EUR: 7,300 CUP.
50 EUR: 18,250 CUP.
100 EUR: 36,500 CUP.
This information can be useful for calculating the cost in Cuban pesos of any amount in dollars or euros. These conversions are based on the provided rates of 360 CUP for each dollar and 370 CUP for each euro.
Why is the informal currency price in Cuba dropping?
The independent media outlet elToque shared its opinion on the sharp decline that the value of US dollars, euros, and MLC has experienced in the last week. It mentioned some factors that could be influencing the drop in the price of currencies, although it does not consider what we are seeing to represent a true 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 "an increasing number of people started to consider that the price of currencies was excessively high and chose to sell before a possible fall," something that triggered the supply.
Pavel Vidal stated that since mid-May - coinciding with the beginning of the decline of the three reference currencies - there has been a significant increase in the supply of foreign currencies in the sample monitored 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 the values of currencies, lasting in some cases for weeks, although they have later 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 in the rate should not be associated with a modification of the long-term trend."
ElToque considers it difficult to anticipate what will happen because they believe that "there are many information gaps that hinder measuring with greater precision the magnitude and evolution of the current crisis."
Meanwhile, the Cuban government remains silent.
From another point of view on the alleged cause of the collapse of currencies in Cuba, Cuban economist Emilio Morales stated this week in an interview granted to CiberCuba that it is "impossible" for the Cuban peso to have revalued on its own.
Morales attributed the fall in the informal price of currencies to a non-economic reason: maneuvers by the cyberwarriors of UCI (University of Computer Sciences) on the island.
According to the economist, the only news that can revalue the peso on its own is "that the Government fell."
Emilio Morales also ruled out that the decline in the price of dollars, euros, and MLC in Cuba is due to a supposed injection of foreign currency into the informal market.
What do you think?
COMMENTFiled under:
