Dollar Surpasses 700 Cuban Pesos, Raising Questions About New Normal

The US dollar has surpassed 700 Cuban pesos in the informal market for the first time in recent history, suggesting that this may be the new normal. As of Friday morning, the dollar was trading at an average of 703 CUP, up from 688 CUP just a week ago, indicating a significant increase of 15 CUP over seven days.

The informal currency market index shows that the dollar is being bought at 700 CUP and sold at 705 CUP, with the euro reaching record highs at 803 CUP. This discrepancy in exchange rates highlights the challenges faced by Cubans due to currency shortages, inflation, and a lack of access to foreign currency.

The Central Bank of Cuba's official rates for the dollar and euro are significantly lower than those found in the informal market, with a gap of 36 pesos for the dollar and 38 pesos for the euro. The market's behavior over the coming days will determine whether the 700 CUP mark becomes a stable threshold or if the dollar retreats.