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Dollar and Euro Prices Surge in Cuba’s Informal Exchange Market

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After 48 hours of stability, the exchange rates of key currencies in Cuba’s informal market experienced a new hike this Tuesday, reigniting uncertainty among the population. The volatility of the informal market, coupled with the Cuban regime’s passivity—ineffectual in economic and monetary policy—reinforces a sense of insecurity among business owners, remittance recipients, and currency traders in Cuba, for whom the uncontrolled exchange rates present significant obstacles.

Since mid-May, when declines in the values of the U.S. dollar (USD), the euro, and the freely convertible currency (MLC) began to be recorded, the black market has been on a rollercoaster ride with sharp drops and steep climbs, punctuated by brief periods of stability that mark shifts in trends.

After starting the day unchanged, as of 11:00 a.m. on Tuesday, June 18th, the U.S. dollar saw an increase of five Cuban pesos (CUP) compared to its price the previous day, now trading at 355 CUP. The euro experienced a similar rise, with an average exchange rate of 365 CUP, while the MLC continues to trade at 300 pesos, the same rate it has maintained since June 11th.

The volatility in Cuba’s informal market underscores the country’s economic decline and the government’s inability to implement an effective monetary policy that establishes a stable official exchange rate. This instability affects a population whose basic needs are partially met through foreign currency stores.

Exchange rates as of 10:55 a.m. on June 18, 2024, in Cuba:

USD to CUP exchange rate according to elTOQUE: 355 CUP

EUR to CUP exchange rate according to elTOQUE: 365 CUP

MLC to CUP exchange rate according to elTOQUE: 300 CUP

Please note that the informal exchange rates in Cuba provided here are not officially recognized or backed by any financial or governmental entity.

FAQs on Current Exchange Rates in Cuba

Given the fluctuating nature of the informal currency market in Cuba, here are some frequently asked questions to help you navigate the current situation:

Why is the informal market in Cuba so volatile?

The volatility is largely due to the lack of effective economic and monetary policies from the Cuban government, leading to uncontrolled exchange rates and uncertainty among traders and the general population.

How often do exchange rates change in Cuba’s informal market?

Exchange rates in Cuba’s informal market can change frequently, sometimes multiple times a day, depending on various economic factors and market speculation.

Are the exchange rates provided by elTOQUE reliable?

While elTOQUE provides useful insights into the current rates, it’s important to remember that these rates are not officially recognized or backed by any financial institution or the government, thus they should be used with caution.



Read More: Dollar and Euro Prices Surge in Cuba’s Informal Exchange Market

2024-06-18 16:08:27

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