Evolution of currency in informal trading in Cuba over the last 24 hours

What has been the behavior of currencies in Cuba in recent hours?

Current Affairs
CiberCuba Editorial Team

21/11/2024 - 12:06pm (GMT-5) |

This Thursday, the exchange rates once again remained unchanged in their average selling values in the Cuban informal market. As of noon on November 21, dollars, euros, and MLC are holding the same values as the previous day.

The US dollar remains valued at 328 pesos, and the euro at 345.

In the case of the freely convertible currency, after losing four pesos on Tuesday that it had gained on Monday, it is today, for the third consecutive day, at 265 CUP, a selling price that it has predominantly maintained in recent months.

In the midst of the ongoing crisis in which the Cuban economy exists, foreign currencies have shown a peculiar stability since August.

The price stability of dollars, euros, and MLC in recent weeks—characterized by modest increases or decreases in value—contrasts sharply with the significant fluctuations seen in the first seven months of 2024, which were marked by abrupt periods of both price rises and falls.

What is happening with the informal market?

The latest report from the Observatorio de Monedas y Finanzas de Cuba (OMFi) indicated that the worsening economic crisis in Cuba has had a "paralyzing effect" on the informal market.

"The worsening of the economic crisis in 2024 has had a paralyzing effect on the informal currency market. The decrease in the number of tourists, imports, and, in general, the decline in economic activity across all sectors has led to a contraction in the supply and demand for foreign currency," stated Cuban economist Pavel Vidal in the aforementioned report, which predicts the continuation of the current situation.

Since August, the US dollar has experienced its longest pause since El Toque began its monitoring: the dollar remained at 320 pesos for 59 days.

According to the latest calculations from the OMFi, by November 30th, the month could end with exchange rates between 319 and 335 pesos per dollar; 336 and 351 pesos per euro; and 270 and 281 pesos per MLC, depending on whether it follows a minimum or maximum scenario.

After a streak of bad news that includes two hurricanes, two earthquakes, and two disconnections from the national electricity grid, the economist does not foresee many immediate changes.

"The longer the recovery process is delayed, the fewer resources remain to boost the production of goods and services," he lamented.