The “correction” occurring in Cuba’s informal currency market has led to a new surge in the value of the freely convertible currency (MLC), following a volatile month of May with abrupt rises and falls. This Sunday witnessed yet another increase in the MLC rate.
The market’s volatility has created a whirlwind for currency buyers and sellers in Cuba over the past few weeks. The first half of May saw continuous and steep increases, while the latter half experienced a significant drop in currency values. However, the trend reversed dramatically in the first week of June, and within just four days, the reference currencies in the informal market nearly regained their pre-slump values.
This Sunday, the informal currency exchange rate published by the independent outlet elTOQUE showed a new surge in the MLC, which gained 10 pesos in a single day, reaching a historic high of 310 Cuban Pesos (CUP).
The Euro and the US Dollar remained stable compared to the previous day, standing at 400 and 390 CUP, respectively, both near their historic highs (402.5 and 395 CUP, respectively). The rise in the MLC—a currency implemented by the Cuban regime for electronic transactions—signals potential future changes in the values of the Euro and the US Dollar.
Typically, increases in the Euro and the Dollar precede and influence the MLC. The reversal of this trend on Sunday may indicate an imminent rise in the prices of these currencies. The informal currency market in Cuba has become increasingly erratic. On Saturday, the US Dollar gained 10 pesos in less than six hours, highlighting the price volatility in an economy plagued by stagnation and inflation.
Current Exchange Rates in Cuba (09/06/2024 – 7:19am)
According to elTOQUE:
- USD to CUP: 390 CUP
- EUR to CUP: 400 CUP
- MLC to CUP: 310 CUP
Alternative rates from other platforms:
- USD: Buy 371 CUP, Sell 390 CUP
- EUR: Buy 381 CUP, Sell 404 CUP
- MLC: Buy 299 CUP, Sell 304 CUP
In response to this chaotic situation, elTOQUE, which tracks the fluctuations in the informal currency market, reported that it has strengthened its controls for calculating representative rates due to increasing suspicions of attempts to manipulate values with false announcements.
The independent outlet mentioned a campaign by “government actors associated with the State Security and propaganda spokespeople from the Communist Party” who have been trying to delegitimize the platform and its methodology since April. They also noted that private sector actors have claimed they can coordinate actions to boost the value of the Cuban Peso.
FAQs About the Volatile Informal Currency Market in Cuba
To provide further clarity on the current fluctuations and trends in Cuba’s informal currency market, here are some frequently asked questions.
Why has the MLC reached a historic high?
The MLC has reached a historic high due to recent volatile market corrections and increased demand for electronically transacted currencies amidst economic instability in Cuba.
What are the current exchange rates for USD and EUR in Cuba?
As of June 9, 2024, the exchange rates are 390 CUP for USD and 400 CUP for EUR, according to elTOQUE.
How reliable are the exchange rates published by elTOQUE?
Despite attempts by government actors to delegitimize their methodology, elTOQUE has reinforced their controls and remains a reliable source for tracking informal market exchange rates.
