The free fall in the price of currencies does not stop in the informal Cuban market, which this Saturday recorded a spectacular five-point collapse in the main reference currencies.
Like yesterday, both dollars and euros dropped by five Cuban pesos, leaving the US currency at 350 CUP and the European one at 360 CUP.
The freely convertible currency (MLC) was also dragged down by this new and sharp decline, dropping by five points as well, with its exchange rate standing at 290 CUP, according to the values recorded at 7 a.m. on this May 25th (local Cuban time).
Exchange rate today 25/05/2024 - 6:50 am in Cuba:
- Exchange rate of the dollarUSD to CUPaccording totheTOUCHTranslate the following text to English:350 CUP
- Euro exchange rateEUR to CUPaccording toelTOQUETranslate the following text to English:Copa 360
- Exchange rate ofMLC to CUPaccording toelTOQUETranslate the following text to English:290 Cuban Pesos
Alternative exchange rate from other platforms:
- Exchange rate of the Dollar (USD): Buying 341 CUP, Selling 350 CUP
- Euro exchange rate (EUR): Buy 354 CUP, Sell 361 CUP
- Exchange rate of the MLC: Buying 287 CUP, Selling 296 CUP.
The US dollar has dropped 45 pesos in nine consecutive days of decline. Although many Cubans consider the fall in the informal price of currencies in Cuba positive for their wallets, they wonder why the prices of consumer goods do not also decrease, in what they consider fair consistency with the current circumstances.
What is happening in the informal currency market in Cuba?
The independent media outlet elTOQUE gave its opinion on the sharp decline being experienced by the value of dollars, euros, and MLC in the informal currency market and mentioned some factors that could be influencing this scenario.
The article published by economist Pavel Vidal Alejandro indicated that one of the causes could be the so-called "market sentiment," meaning that "a growing number of people started to consider that the price of currencies was excessively high and chose to sell before a possible fall," something that boosted the supply.
Pavel Vidal stated that since mid-May - coinciding with the beginning of the decline of the three reference currencies - there was a significant increase in the supply of foreign currency in the sample monitored in virtual spaces. However, he did not consider what we are seeing to imply a real revaluation of the national currency.
On the other hand, he 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, with sharp spikes in virtual offers on the downside that have lasted in some cases for weeks, although they have then recovered.
However, the economic analyst estimated that the fundamental factors that explain 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."
In 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 with 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 the UCI (University of Computer Sciences) on the island.
According to the economist, the only news that can alone revalue the peso is "the fall of the Government." Emilio 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 into the informal market.
Meanwhile, the Cuban government remains silent.
What do you think?
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