Cuba Faces Record High Prices for Dollar, Euro, and MLC in Black Currency Market
On Monday, February 5, Cuba woke up to a record-breaking price for the dollar, euro, and Freely Convertible Currency (MLC) in the black currency market. The Cuban peso continues to devalue against strong currencies in the parallel currency market.
According to media outlet El Toque, the rates for the main foreign currencies in Cuba registered significant increases, reaching historic levels for the day. The euro (EUR) increased two seats and is currently sold for 297 Cuban pesos, close to 300 pesos in national currency. This price has never been seen before on the island. Meanwhile, the American dollar also increased in cost and is now being sold and bought at 295 Cuban pesos, with some sellers even offering it for 300 pesos.
The Freely Convertible Currency (MLC) remains strong and is increasing in value, with an exchange rate of 258 Cuban pesos. This comes at a time when the Cuban government had promised to intervene in the informal market in February, but concrete steps towards that measure have not been seen.
The Cuban economy heavily depends on the value of the dollar, which influences the prices of many products and services. However, the lack of clarity about when the new government policy will be implemented has generated instability in the currency market, leading to the observed record prices for the dollar, euro, and MLC.
Since there is no access to foreign currency for sale to the public in the island’s official banking institutions, people can only turn to the informal market to make their purchases at current rates. In contrast, the official dollar rate in Cuban banks continues to be 120 Cuban pesos per one dollar, significantly lower than the record-breaking prices seen in the informal market.