The euro follows a similar behavior: it now stands at 480 CUP.
The downward trend of dollar and the euro in the Cuban informal market deepens. Both currencies have chained several days of falls, according to the report published this November 6 by the independent media the TOUCH.
The dollar woke up today at 410 CUP, ten pesos less than the day before, and has accumulated nine consecutive days of declines, with a total loss of 80 pesos since October 29, when it began its decline.
The euro follows a similar behavior: it now stands at 480 CUP, also ten pesos less than the previous day. The European currency has dropped 60 pesos in seven days.
According to the media, this evolution responds to a phenomenon known as exchange rate overreaction or overshooting, in which an abrupt increase driven by speculative expectations is followed by a partial correction. This pattern, they noted, has been repeated several times since 2022.
Despite the recent decline, the distance between the Cuban peso and currencies remains abysmal. With an average state salary of 5,000 CUP, a worker can barely buy around 12 dollars in the informal market, evidence of the persistent deterioration of purchasing power.
Furthermore, the fall in currencies is not reflected in the cost of living. Prices of food, transportation and services continue to rise, driven by shortages and costs in foreign currency. Consequently, the decline of the dollar does not represent tangible relief for the economy of Cuban households for now.
Despite the decline, the gap between the Cuban peso and foreign currencies continues to be significant. With an average state salary of around 5,000 CUP, the average worker can barely acquire about 12 dollars in the informal market, a sign of the sustained loss of purchasing power in the country.
Although exchange rates are falling, prices for food, transportation and basic services continue to rise, driven by foreign currency costs and product shortages. In practice, the decline in the dollar does not translate into an improvement in purchasing power or a perceptible relief for Cuban households.
