The dollar reacts to economic measures in Cuba with a new drop in price.

The US currency falls for another day, with a drop in the MLC also added to the decline.

Current events
CiberCuba Editorial

18/07/2024 - 7:42 am (GMT-5) |

Cargando — Dollars (Reference image)Photo © Pixabay

Dólares (Imagen de referencia) © Pixabay — Dollars (Reference image)Photo © Pixabay

With a new drop, that was the reaction in the last hours of the dollar in the informal Cuban market to the economic measures announced by the government this Wednesday, including the announcement that the regime will once again accept cash currencies.

At 7:00 a.m. (local time) on July 18th, the dollar is priced at 305 CUP. This figure represents a five-unit drop compared to the previous day.

The Convertible Free Currency (MLC) is also falling, with an average sale in the informal market dropping to 275 CUP, which is five pesos less than its value yesterday.

Only stays unchanged this Thursday, the euro, which remains valued on average at 320 pesos.

Exchange rate today 07/18/2024 - 1:10 a.m. in Cuba:

Exchange rate of the USD to CUP according to elTOQUE: 305 CUP.

Exchange rate of the euro EUR to CUP according to elTOQUE: 320 CUP.

Exchange rate from MLC to CUP according to elTOQUE: 275 CUP.

The informal exchange rate of Cuba offered here is not officially recognized or supported by any financial or governmental entity.

The Cuban government explains why it is not establishing a new official exchange rate.

In the midst of the flood of announcements and new measures made known this Wednesday by the Cuban government, revealing desperation in the face of an economy sinking at full speed, Prime Minister Manuel Marrero Cruz said they cannot establish a new exchange rate "overnight."

The high-ranking Cuban official argued that a new official exchange rate "would bring a devaluation of the peso and an undesired impact on inflation, prices, and low wages," as if that were not already the current reality.

He indicated that there will be a new resizing of the foreign exchange market, but warned that it is complex in the current conditions of the economy, and said that it will be implemented in a "very gradual and very careful" manner.

It is a fact that the regime has had to admit the failure of the official exchange rate of 1 to 120 imposed in August 2022 as part of the economic restructuring, but has not yet found a way to determine a rate that eliminates the informal foreign exchange market.

With such a public statement, the Castro regime rules out for the time being modifying the official exchange rate, despite the fact that it operates outside the real conditions of the economy and shows a deep mismatch in relation to the market on the street, where the informal exchange rate stands at 305 CUP per USD this Wednesday.

During his intervention, Manuel Marrero Cruz did not miss the opportunity to reiterate his rejection of what he called "illegal foreign exchange market," which must be put to an end, because it is not possible that "from a country abroad and from a computer, the exchange rate that should prevail in the country is projected," he said in a veiled reference to elToque.