Cuba's Currency Market Takes a Breather Amid Ongoing Volatility

The informal currency exchange market in Cuba has taken a breather this Sunday, but the significant gains made over the past week remain evident. The U.S. dollar is holding steady at 674 Cuban pesos (CUP), while the euro stands at 785 CUP.

The MLC, or freely convertible currency, has seen a slight uptick to 479 CUP. Despite the stability this weekend, the currencies have not lost strength, with the dollar rising by nine pesos and the euro by 20 over the past week.

This volatility is attributed to inflation, low wages, and an increasing dollarization of the economy in Cuba. The disparity between the official exchange rate set by the Central Bank and the informal market remains significant, with the dollar priced at 601 CUP and the euro at 684 CUP under Segment III.