Dollar and Euro Rise in Cuba's Informal Market as Inflation Continues to Bite

The informal market in Cuba saw an overall upward trend at the close of Monday, September 21. The US dollar and euro experienced gains compared to the previous day's rates. The average value of the US dollar in the informal market rose by five Cuban pesos (CUP) to 718 CUP, while the euro increased by two-and-a-half CUP to 818 CUP.

The MLC, a currency used in state-run stores, showed an indicative value of 504 CUP due to low trading volume. However, it still marked a gain compared to the previous day's rate. The dollar continued its dominance over the informal market, with a rise of 2.9% over the past week and an accumulation of a 54.5-peso gain in the last month.

The exchange rate gap between the official Central Bank of Cuba (Segment III) rates and the informal market remains significant, with a difference of 49 pesos for the dollar and 51 pesos for the euro. This discrepancy affects internal prices and purchasing power in Cuba, where sustained inflation, low state salaries, and partial dollarization of the economy continue to put pressure on the Cuban peso.