The informal currency market in Cuba confirms this Saturday, April 4th, a new increase in the price of the dollar and the euro, in a context marked by growing distrust in the Cuban peso following the recent issuance of higher denomination bills by the regime.
According to the monitoring by the independent media elTOQUE, the US dollar (USD) is currently priced at 518 Cuban pesos (CUP), while the euro (EUR) has risen to 585 CUP, reinforcing the upward trend that began after nearly two weeks of stability in the parallel market.
The movement coincides with the announcement from the Central Bank of Cuba (BCC) of new 2,000 and 5,000 CUP bills, a measure that the authorities themselves have acknowledged as a response to rising prices and the need to facilitate cash transactions.
However, beyond the official explanation, the introduction of these banknotes is seen by many Cubans as a clear sign of the peso's loss of value, which has reinforced the demand for foreign currency as a safe haven.
In economies with high inflation and low trust in the national currency, such measures often have an immediate effect: it increases the perception of devaluation and accelerates the so-called "flight to the dollar". In the case of Cuba, where the informal market serves as a real reference for the exchange rate, this impact is quickly reflected.
The recent increase in the dollar—from 515 to 518 CUP in just two days—and the jump in the euro to 585 CUP point to a change in trend after the stability observed in previous days.
Meanwhile, the MLC exhibits an opposite behavior and declines to 390 CUP, confirming its volatility and dependency on internal consumption.
In this scenario, the issuance of high-denomination bills does not seem to alleviate market tensions; rather, it appears to exacerbate them by reinforcing the perception that the Cuban peso continues to lose value in everyday transactions.
The result is a market that is once again on the rise, driven not only by economic factors but also by expectations and distrust in the national currency.
Filed under: