Average selling value of foreign currencies in the informal Cuban market in the last 24 hours.

While currencies rise or fall, the debate over whether values should increase or decrease reflects the interests and realities of different sectors in Cuban society.

Current Affairs
CiberCuba Editorial Team

17/10/2024 - 7:42am (GMT-5) |

The price of foreign currencies in Cuba has entered a new period of stability over the past five days, according to values published by the independent media elTOQUE based on monitoring the fluctuations of dollars, euros, and Freely Convertible Currency (MLC) in buying and selling announcements posted on social media.

After giving signs at the beginning of October of some movements, the currencies are apparently calm again.

At 7:00 a.m. on this October 17, the dollar is still valued at 325 and the euro at 340 CUP.

In the case of the freely convertible currency (MLC), it remains at 265 CUP, a price it has maintained since October 9, when it suddenly dropped by five pesos.

Exchange rate today 10/17/2024 - 7:40 a.m. in Cuba:

Exchange rate of the Dollar USD to CUP according to elTOQUE: 325 CUP.

Exchange rate of the Euro EUR to CUP according to elTOQUE: 340 CUP.

Exchange rate of MLC to CUP according to TOQUE: 265 CUP.

The debate over whether the exchange rate in the informal Cuban market should rise or fall reflects the interests and realities of different sectors in Cuban society.

Reasons why some want the price of currencies to rise:

Remittances and purchasing power: Those who receive remittances from abroad, whether in dollars or euros, benefit from a higher exchange rate, as they can convert those dollars into more Cuban pesos. This allows them to increase their purchasing power in an economy where prices, especially in the informal market, are high.

Investments and private businesses: Many self-employed individuals and entrepreneurs rely on the informal currency market to acquire dollars and euros, which are necessary for importing products or accessing international markets. A high exchange rate can attract more foreign currency to the country and encourage investments, although it also increases operating costs.

Speculation and quick profits: Some people in the informal currency market act as speculators, buying and selling dollars with the intention of making quick profits as the value of the currency fluctuates. If the dollar rises, those who have accumulated dollars can sell them at higher prices and achieve significant gains.

Reasons why others prefer that foreign currencies decrease or remain stable:

Inflation and the rising cost of living: When the price of the dollar in the informal market rises, the prices of imported products and many goods in the Cuban market also increase. This affects most Cubans who do not have access to dollars or remittances, making the cost of living increasingly high and difficult to sustain with salaries in Cuban pesos.

Impact on state-owned companies: The Cuban government and the state-owned companies operating in Cuban pesos have difficulties accessing foreign currencies at reasonable prices when the exchange rate in the informal market is high. This can hinder the import of essential products or the supply of stores in MLC, exacerbating the shortage of basic goods.

Increase in social inequality: A more expensive dollar in the informal market benefits those with access to foreign currencies, primarily families with connections abroad or those receiving remittances, while exacerbating the difficulties of the majority of Cubans who rely solely on their income in Cuban pesos. This deepens economic inequality.

Pressure on salaries in pesos: In an economy where the price of the dollar continues to rise, salaries in Cuban pesos are losing value rapidly. This reduces the purchasing power of the majority of the population that relies on state salaries, impacting their quality of life.