The informal foreign exchange market in Cuba started the week with unexpected movements. This Monday, the United States dollar (USD) recorded an increase in its exchange rate against the Cuban peso (CUP), while the euro (EUR) and the freely convertible currency (MLC) remained stable, with no variations.
According to the available data, the dollar rate rose from 365 CUP on Sunday to 367 CUP this Monday, marking a increase of 2 pesos in just 24 hours.
In contrast, the euro maintained its exchange rate at 380 CUP, and the MLC also remained at 265 CUP, without experiencing any changes.
Informal exchange rate in Cuba, Monday, April 28, 2025 - 10:00 AM
- Exchange rate of the dollar (USD) to Cuban pesos (CUP): 367 CUP
- Exchange rate of euro (EUR) to Cuban pesos (CUP): 380 CUP
- Tasa de cambio del (MLC) a pesos cubanos CUP: 265 CUP
This slight increase in the dollar breaks the relative stability of recent days, generating expectations among those who depend on the parallel market to acquire foreign currencies. Furthermore, movements often tend to intensify after the weekends, when informal economic activity is revived.
Exchange Rate Evolution
Experts point out that these types of fluctuations are due, among other factors, to the persistent high demand for dollars, to supply limitations in the informal market, and to the general economic tensions the country is experiencing.
For its part, the stability of the euro and the MLC may be due to a lower volume of transactions with these currencies compared to the dollar, which remains the primary instrument for in-store purchases and remittances.
Despite the moderate rise of the dollar, it confirms the overall trend of volatility that characterizes the informal Cuban market, where the scarcity of foreign currency and economic uncertainty continue to put pressure on exchange rates.
Frequently asked questions about the informal currency market in Cuba
Why did the dollar rise in Cuba's informal market?
The dollar has risen in the Cuban informal market due to high demand and supply constraints in the informal circuit. Additionally, the overall economic tensions faced by the country contribute to this fluctuation. The scarcity of foreign currency and the need to purchase products in stores that only accept foreign currency also drive this demand.
What has happened to the euro and the MLC in the Cuban informal market?
The euro and the MLC have remained stable in the Cuban informal market, with no significant changes in their exchange rates. The stability of the euro may be attributed to a lower volume of transactions compared to the dollar, while the MLC continues to be primarily used in state-run stores, contributing to its stability in this segment.
How does the volatility of the informal market affect Cubans?
The volatility of the informal currency market affects Cubans by influencing their real purchasing power. Since the informal market is the main reference for the buying and selling of foreign currency, fluctuations in exchange rates impact citizens' ability to acquire essential products that are only available in foreign currencies.
Why is the informal market important in the Cuban economy?
The informal currency market is crucial in the Cuban economy because it provides a key reference for the real exchange rate. In a context where access to foreign currency is limited and official channels are inefficient, citizens rely on the informal market to obtain the necessary foreign currencies to purchase essential goods and protect their purchasing power against inflation and the devaluation of the Cuban peso.
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