Cuban Peso Plummets as Dollar and Euro Rise on Informal Market
The informal currency market in Cuba is experiencing mixed performance among major currencies on September 11. The US dollar is trading at 688 Cuban pesos (CUP) with a buying rate of 685 CUP and a selling rate of 690 CUP, remaining unchanged from the previous day but increasing by 5 pesos (+0.7%) over the past week compared to an average of 683 CUP seven days ago.
The dollar's rate has increased by 22.5 pesos compared to 30 days ago when it was around 665 CUP, highlighting the volatility of the informal market amid a scarcity of foreign currency. The euro starts the day on an upward trend, currently valued at 785 CUP with a buying rate of 780 CUP and a selling rate of 789 CUP, increasing by 3.5 pesos from the previous day.
The gap between official and informal exchange rates remains significant, with the official rate set at 651 CUP per dollar and 757 CUP per euro remaining far below the rates prevailing in everyday informal market transactions. The fluctuation of currency rates directly affects internal prices and the purchasing power of Cubans, particularly in a landscape of sustained inflation, low state wages, and increasing partial dollarization of the economy.