This Thursday, the three reference currencies in the Cuban informal market have seen significant price increases compared to the previous day, with values rising between 10 and 30 pesos.
After a decline in average selling prices that lasted nearly three weeks, both euros and dollars are solidifying their recovery for the second consecutive day, and today the MLC is also joining in.
The euro is rising sharply, as of seven in the morning (Cuban local time) on June 6th, the European currency is valued at an average of 335 CUP, which is 30 pesos more than the previous day.
The dollar, for its part, has risen for the second consecutive day by 20 pesos, going from 300 to 320 CUP.
In the case of the Freely Convertible Currency (MLC), it has increased by 10 pesos, and its average selling price is now 270 CUP.
The informal currency market today gives a strong and clear signal of recovery, following an unprecedented decline that began with the dollar on May 16, characterized especially by the rapid pace at which currencies fell over the span of two weeks.
The three currencies granted only one day of respite from the decline when on June 4, none rose or fell in price.
The surge in foreign currencies this Thursday suggests that they may rise again at the same speed at which they fell.
Will prices surpass the record highs reached in informal sales in Cuba? This is a question that many are asking today.
Exchange rate today 06/06/2024 - 7:39 a.m. in Cuba:
Dollar exchange rate USD to CUP according to elTOQUE: 320 CUP.
Exchange rate of the euro EUR to CUP according to El TOQUE: 335 CUP.
Exchange rate of MLC to CUP according to TOQUE: 270 CUP.
Alternative exchange rate from other platforms:
Dollar (USD) exchange rate: Buy 307 CUP, Sell 333 CUP.
Euro (EUR) exchange rate: Buy 315 CUP, Sell 332 CUP.
MLC exchange rate: Buy 262 CUP, Sell 272 CUP.
The informal exchange rate for Cuba provided here is not officially recognized or endorsed by any financial or governmental entity.
In an extensive article published on May 21, elToque, an independent outlet that has been documenting the fluctuations of currency prices in the Cuban informal market since 2019, expressed its opinion on the sharp decline in the value of dollars, euros, and MLC.
The economist Pavel Vidal Alejandro stated first that the announcement of the restoration of remittance services to the island through Western Union (on May 9) and the approach to a fixed value (400 CUP x 1 USD) may have influenced expectations, known as market sentiment.
The economist clarified that a "new balance has been established in the consensus and the attitude of market participants." In other words, "an increasing number of people began to consider that the price of foreign currencies was excessively high and chose to sell before a possible drop," which triggered an increase in supply.
On the other hand, the mentioned source noted that it is natural for "temporary corrections to occur after an extended bullish period in the market."
He explained that since 2022, there have been six significant and consecutive declines in currency values, which have lasted for weeks in some cases, but have subsequently recovered.
In any case, Vidal Alejandro believed that the fundamental factors explaining the internal and external imbalances of the Cuban economy had not changed, and therefore, the temporary drop in foreign currency should not be interpreted as a genuine revaluation of the Cuban peso.
What do you think?
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