Cuba's Electricity Crisis Stabilizes Currency Rates in the Black Market

The paralysis of the country caused by the total collapse of the national electric power system (SEN) in Cuba has helped keep the prices of reference currencies stable in the black market, with the values of the dollar, euro, and Convertible Currency (MLC) remaining unchanged for a week.

Navigating the Turbulent Currency Landscape in Cuba

Stability Amid Uncertainty

The ongoing electricity crisis in Cuba has had an unexpected impact on the country's currency market. Despite the widespread disruption and uncertainty caused by the power outage, the values of the dollar, euro, and Convertible Currency (MLC) have remained relatively stable in the black market for the past week. This stability is in contrast to the fluctuations observed in the early part of October, suggesting a new period of relative calm in the currency exchange landscape.As of Saturday, October 19, at 11 a.m., the dollar is valued at 325 Cuban pesos (CUP), the euro at 340 CUP, and the MLC at 265 CUP. These rates have been maintained since October 9, when the MLC rate dropped suddenly by five pesos.

Exploring the Factors Behind the Stability

The paralysis of the country caused by the total collapse of the national electric power system (SEN) appears to be a contributing factor to the stability of the currency exchange rates in the black market. With the population immersed in uncertainty about the recovery of their relative and precarious "normalcy," the demand for foreign currencies may have decreased, leading to a more stable market.Additionally, the lack of economic activity and the disruption to daily life due to the power outage could have reduced the overall demand for foreign currencies, further contributing to the stability of the exchange rates.

Monitoring the Fluctuations

The independent medium elTOQUE has been closely monitoring the fluctuations of the dollar, euro, and MLC in the black market, based on buy and sell announcements published on social media. Their data indicates that the currency exchange rates have remained relatively unchanged for the past week, suggesting a new period of stability in the market.This stability is in contrast to the earlier signs of movement in the currency exchange rates observed at the beginning of October. The current situation highlights the dynamic and unpredictable nature of the Cuban currency market, which is heavily influenced by various economic and political factors.

Equivalencies and Exchange Rates

According to the exchange rates reported on October 19, the equivalencies of each available euro and US dollar bill to Cuban pesos (CUP) are as follows:U.S. Dollar (USD) to Cuban Peso (CUP):1 USD = 325 CUP5 USD = 1,625 CUP10 USD = 3,250 CUP20 USD = 6,500 CUP50 USD = 16,250 CUP100 USD = 32,500 CUPEuro (EUR) to Cuban Peso (CUP):1 EUR = 340 CUP5 EUR = 1,700 CUP10 EUR = 3,400 CUP20 EUR = 6,800 CUP50 EUR = 17,000 CUP100 EUR = 34,000 CUPThese exchange rates provide a clear picture of the current value of the dollar and euro in the Cuban black market, which is an important reference for individuals and businesses operating in the country's complex economic landscape.