Depreciation of foreign currency in the Cuban informal market

The official announcement of the establishment of the foreign exchange market, made by the Cuban government in National Assembly of People’s Power (ANPP)This Saturday, it caused a drop in prices in the unofficial currency market in Cuba.

The representative rate of this unofficial market, calculated by independent media the touchindicates a three-point drop in all currencies that Cubans used to use.

The US dollar, which reached 117 Cuban Pesos (CUP) on the unofficial market, fell after the announcement to 114 CUP. The euro suffered similar declines, falling from 123 to 120 CUP; As well as the free convertible currency (MLC) which decreased from 120 to 117 CUP.

While the sale of these three coins on the black market is still more or less equal at around 120 CUP, buying them shows more noticeable differences. While buying a dollar is about 100 Cuban pesos, buying a euro goes up to 110 CUP and an MLC is up to 115 pesos.

The decline in currencies in the informal market is significant. If we compare the price that these same coins reached yesterday, we can see a drop of about 3% of their exchange value in less than 24 hours.

The representative unofficial market price (TRMI) prepared by independent media shows the reference values. As he explains, it is calculated from the average numbers written in ads for buying and selling coins on social media groups and classified ad sites.

“To see the variance of values, we compare the messages of the last 24 hours before the closing time of the information with the values ​​of the previous day. It is important to clarify that our representative rate of the informal market consists of “advertisements of buying or selling”, that is, they are not tangible operations, but expressions of the “wishes” of the representatives who They attend this market,” explains the aforementioned Medium.

Who makes the call? “request task”which caused great disaster for the Cuban economy and into the pockets of families, the trend in the informal foreign exchange market was upward, except for specific moments.

At the beginning of June, the US dollar lost its value and was trading at 95 kopecksshortly after the White House announced a set of economic measures in favor of the Cubans, but as the month progressed, the escalation that had slowed dramatically resumed again with the recent announcement by the Cuban authorities.

The Cuban government announced, Thursday, the opening of a new foreign exchange market for the sale of foreign currencies to the population, when the US dollar reached the value of 118 pesos in the informal sector, a figure that represents a record since the implementation of the economic system.

Speaking at the ninth regular session of the National Atomic Energy Agency, the Minister of Economy and Planning said, Alexander Gil Fernandezannounces the change in the value of the foreign currency compared to the current rate of the unofficial market.

He explained that the sale of foreign currencies to the population will be at an exchange rate “based on an economic basis and where we can deal with all currencies including the dollar in cash.”

Despite the uncertainty still surrounding the announcement and the way in which the government operates Miguel Diaz-CanelIn fact, it has slowed the upward trend of unofficial exchange rates.

It remains to be seen whether the official timeframes and rates set by the Cuban authorities convince those who are now turning to the informal market due to the impossibility of buying or selling foreign currency at official exchange offices (CADECA) and banks in the country.

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