Strong decline in euros and dollars is consolidated in Cuba

Strong decline in euros and dollars is consolidated in Cuba

HAVANA, May 23  This Thursday euros and dollars dawn with another sharp decline in their average sales value in the Cuban informal market,which consolidates the decline that both currencies have registered since the middle of this month.

Especially relevant is the drop of 8 pesos in the informal price of the euro, which at 7 a.m. on May 23 (local Cuban time) appears with an average sales value of 370 CUP.

The dollar, for its part, dropped five pesos again, as it has been doing constantly since last May 16, and falls from 365 to 360 pesos.

The US currency has dropped 35 pesos in eight days of constant decline.

The Freely Convertible Currency (MLC) is the only one that denotes a certain stability, as it continues to be valued at 300 pesos, a price it has held for several days.

Exchange rate today 05/23/2024 – 7:03 a.m. in Cuba:

Exchange rate from USD to CUP according to elTOQUE: 360 CUP.

Euro exchange rate EUR to CUP according to elTOQUE: 370 CUP.

Exchange rate from MLC to CUP according to elTOQUE: 300 CUP.

Alternative exchange rate from other platforms:

Dollar (USD) exchange rate: Buy 353 CUP, Sell 362 CUP.

Euro (EUR) exchange rate: Buy 365 CUP, Sell 374 CUP.

MLC exchange rate: Buy 293 CUP, Sell 299 CUP.

The informal Cuba exchange rate offered here is not officially recognized or endorsed by any financial or government entity.

Below are the equivalents of each available banknote from euros and US dollars to Cuban pesos (CUP), according to the exchange rates of this Thursday, May 23.

This information can be useful to calculate the cost in Cuban pesos of any amount of dollars or euros. These conversions are based on the provided rates of 360 CUP for each dollar and 370 CUP for each euro.

Is the Cuban peso appreciating these days?

The independent media elToque gave its opinion about the sharp decline that the value of dollars, euros and MLC has experienced in the last week and mentioned some factors that could be influencing the fall in the price of currencies, although it does not consider that what we are seeing suppose a real revaluation of the national currency.

In its analysis, the article published by Pavel Vidal Alejandro considers that one of the causes could be the so-called “market sentiment”, that is, “a growing number of people began to consider that the price of currencies was excessively high and chose to sell before a possible fall”, which triggered the offer.

Pavel Vidal assured that since mid-May – coinciding with the beginning of the fall of the three reference currencies – there has been a notable increase in the supply of currencies in the sample monitored in virtual spaces.

On the other hand, elToque pointed out that it is normal for “temporary corrections to occur after an extended bullish period in the market” and stressed that since 2022 there have been six pronounced and consecutive falls in currency values, which have lasted in some cases until weeks, but then they recovered again.

However, the economic analyst estimates that the fundamental factors that explain the internal and external imbalances of the Cuban economy have not changed and that therefore “the current inflection of the rate should not be associated with a modification of the trend” in the long term. .

“The high fiscal deficit, the excessive issuance of Cuban pesos, the contraction of national production and exports, the growing dependence on imported products and inputs, dollarization, emigration and generalized and persistent inflation in the markets remain,” That is to say, the crisis continues and there is no reason for the peso to change its tendency towards devaluation.

Is it possible to know what is going to happen with certainty? ElToque also sees this as complicated because it considers that “there are many information gaps that make it difficult to more accurately measure the magnitude and evolution of the current crisis.”

“Only the Government has economic policy tools (fiscal and monetary, above all) and can implement reforms to stabilize and change the direction of the exchange rate. As long as it does not do so, the exchange rate will continue to show the price of immobility, continuity and uncertainty,” they concluded.

Another point of view on the collapse of currencies in Cuba

Cuban economist Emilio Morales assured this week in an interview with CiberCuba that it is “impossible” for the Cuban peso to have revalued on its own, gaining ground on the dollar, as has happened in recent days, and he blamed the fall in the informal price of the currencies at the maneuvers of the cyber-claims of the UCI (University of Computer Sciences) of the island.

In the opinion of Emilio Morales, the only news that can revalue the peso on its own is “that the Government fell,” and this is because it would finally open up hope for a change in the system.

Morales also ruled out that the decrease in the price of dollars, euros and MLC in Cuba is due to an alleged injection of foreign currency into the informal market.