This Thursday, the three reference currencies in the informal Cuban market wake up with striking price increases compared to the previous day, with values ranging between 10 and 30 pesos higher.
After a drop in the average sales values that lasted almost three weeks, euros and dollars are consolidating their recovery for the second consecutive day, and today the MLC is also joining the trend.
The Euro is on the rise, as at seven in the morning (Cuban local time) on June 6, the European currency is valued on average at 335 CUP, that is, 30 more pesos than the previous day.
The dollar, on the other hand, rises for the second consecutive day by 20 pesos and goes from 300 to 320 CUP.
In the case ofFreely Convertible Currency (MLC), increases by 10 pesos.and its average selling price is now270 Cuban pesos.
The informal foreign exchange market gives a second and strong signal of recovery today, after an unprecedented decline initiated by the dollar on May 16 and marked above all by the breakneck pace at which currencies dropped over the course of two weeks.
The three coins only granted a day of pause in the fall when on June 4th none of them went up or down in price.
The surge in currencies this Thursday suggests that perhaps they will skyrocket again at the same speed at which they dropped.
Will they surpass the record prices they reached in the informal sale in Cuba? That is the question many are asking themselves today.
Exchange rate today 06/06/2024 - 7:39 a.m. in Cuba:
Exchange rate of the USD to CUP according to elTOQUE: 320 CUP.
Exchange rate of the euro EUR to CUP according to elTOQUE: 335 CUP.
Exchange rate from MLC to CUP according totheTOUCH270 Cuban pesos.
Alternative exchange rate from other platforms:
Dollar exchange rate (USD): Buying 307 CUP, Selling 333 CUP.
Euro (EUR) exchange rate: Purchase 315 CUP, Sale 332 CUP.
MLC exchange rate: Buying 262 CUP, Selling 272 CUP.
The unofficial exchange rate for Cuba provided here is not officially recognized or supported by any financial or governmental entity.
In an extensive article published on May 21 by elToque, an independent media outlet that has been documenting the ups and downs of foreign exchange rates in the Cuban informal market since 2019, they gave their opinion on the sharp decline in the value of dollars, euros, and MLC.
The economist Pavel Vidal Alejandro first indicated that the announcement of the restoration of remittance services to the island through Western Union (on May 9) and the proximity to a fixed exchange rate (400 CUP per 1 USD) could have influenced expectations, the so-called market sentiment.
The economist pointed out that a "new balance had been formed in the consensus and in the attitude of market participants." In other words, "an increasing number of people began to consider that the exchange rate was excessively high and chose to sell before a possible drop," which sparked supply.
On the other hand, the aforementioned outlet pointed out 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 pronounced and consecutive falls in the values of currencies that have lasted in some cases for weeks, but then have recovered.
In any case, Vidal Alejandro considered that the fundamental factors that explain both the internal and external imbalances of the Cuban economy had not changed, and therefore, the temporary fall in foreign currency should not be interpreted as a true revaluation of the Cuban peso.
What do you think?
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