Title: Currencies on the Rise in Cuba’s Informal Exchange Market
Date: August 7, 2021
This Monday, August 7, the unofficial exchange market in Cuba, also known as the “black market,” witnessed a surge in the value of international currencies, particularly the euro and the American dollar. According to the morning update by independent media El Toque, these currencies are currently experiencing an upward trend, causing concerns for the ordinary Cuban population.
The report highlights that the euro has already surpassed the barrier of 240 pesos in the European zone, reaching 245 Cuban pesos. On the streets of Cuba, the average exchange rate for the euro today is 245 pesos, although discrepancies may exist across different provinces. Experts predict that the euro may reach 300 pesos, indicating a depreciation of the national currency. This situation poses significant challenges for ordinary Cubans who primarily earn in Cuban pesos. Additionally, the Convertible Currency (MLC) has also experienced a rise, now being exchanged at 208 Cuban pesos.
Following a similar path as the euro, the US dollar has also witnessed an increase in its value compared to the weekend. Currently, on August 7, the dollar is being exchanged at 238 Cuban pesos. It is expected to reach 240 pesos during the week. The continuous decline in the value of the national currency against these strong currencies is becoming more evident, aggravated by the ongoing cash crisis and the recently announced “banking” measures, which are unlikely to provide significant benefits for the population.
In contrast, the Central Bank of Cuba (BCC) reports the official exchange rates as follows: the euro at 132 Cuban pesos, the dollar at 120 pesos, the Canadian dollar at 90 Cuban pesos, and the pound sterling at 153 Cuban pesos.
As Cuba faces increasing economic challenges, including a rise in the informal exchange market, the depreciating value of the national currency raises concerns among ordinary citizens. The impact of these circumstances may have far-reaching implications for the Cuban population’s livelihoods and overall economic stability.