AREQUIPA, Peru – The informal foreign exchange market in Cuba recorded a new increase in the price of the dollar. At dawn this Saturday, the average sale of the US currency rose one peso compared to the previous day, standing at 326 Cuban pesos (CUP), according to the independent media report. The Touch.
Meanwhile, the euro maintains its value at 345 CUP, a figure it reached the day before. For its part, the Freely Convertible Currency (MLC) remains stable with a price of 265 CUP.
These fluctuations reflect the instability that has characterized the foreign exchange market in Cuba in the last year. Last June, values increased steadily, while in July they experienced a significant drop and subsequently a period of stability for several weeks.
The index prepared by The Touch takes as reference nearly 2,000 daily currency purchase and sale advertisements on various Cuban websites to establish the exchange ratethus providing an approximation to the behavior of the informal currency market on the Island.
According to the Central Bank, the dollar is quoted at 120 CUP and the euro at just over 130 CUP, but the demand for foreign currency in the Cuban economy makes the majority turn to the black market, where prices are higher but the currencies more accessible.
Economic instability and a shortage of foreign currency continue to drive Cubans to turn to the informal market, despite the risks. Fluctuations in the prices of the euro, dollar and MLC affect both consumers and those who trade in the currencies.
Recently the Cuban authorities “they warned” of sanctions for those who carry out transactions in the informal foreign exchange market. According to the official newspaper Granma, These operations are illegal and can result in penalties of “deprivation of liberty of two to five years, or a fine of 500 to 1,000 quotas, or both.” Cuban legislation emphasizes that any transaction of sale, transfer, transmission or acquisition of foreign currency outside the official framework constitutes a crime.
