For the second consecutive day, the dollar opens with a drop in its average selling price in the informal market in Cuba.
The US dollar has dropped in the last few hours to 320 CUP, two pesos less compared to its price on Thursday.
In just 48 hours, the dollar has decreased by five units, a fact that many attribute to the recent announcement by the Cuban government to establish a more flexible official exchange rate by 2025, one that responds to the dynamics of market supply and demand.
In the case of the euro, it remains priced at 330 CUP, a value it reached yesterday
The freely convertible currency (MLC) also remains unchanged, still valued at 265 CUP.
The regime's announcement regarding the so-called "floating exchange rate," the details and effective date of which are still unknown, aims to regulate the currency market in a context where the informal foreign exchange market predominates, setting the real prices of the goods consumed by the population.
Exchange rate today 12/20/2024 - 8:08 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 320 CUP.
Exchange rate of the euro (EUR) to CUP according to elTOQUE: 330 CUP.
Exchange rate of MLC to CUP according to TOQUE: 265 CUP.
The strategy to control the foreign exchange market
The Cuban government announced on Wednesday that it will establish a flexible official exchange rate, adjusted to supply and demand, in an effort to compete with the informal market, which currently dominates the real value of the Cuban peso.
This measure is part of a partial dollarization of the economy, which impacts strategic sectors such as wholesale and retail trade, tourism, and foreign trade. Additionally, it will allow the use of cash dollars in sectors such as pharmacies, airports, and exporting agricultural producers.
In an economic context marked by inflation and the failure of previous economic policies, the regime is attempting—once again—to regain control of a landscape where the rules of the informal market largely shape the economic reality of the population.
Equivalents of each available euro and US dollar bill to Cuban pesos (CUP)
United States Dollar (USD) to Cuban Peso (CUP), based on the exchange rates for December 20th:
$1 USD = 320 CUP.
$5 USD = 1,600 CUP.
$10 USD = 3,200 CUP.
$20 USD = 6,400 CUP.
$50 USD = 16,000 CUP.
$100 USD = 32,000 CUP.
Euros (330 CUP for each euro):
1 EUR = 330 CUP.
5 EUR = 1,650 CUP.
10 EUR = 3,300 CUP.
20 EUR = 6,600 CUP.
50 EUR = 16,500 CUP.
100 EUR = 33,000 CUP.
Frequently Asked Questions about the Informal Currency Market in Cuba
Why has the price of the dollar decreased in the Cuban informal market?
The price of the dollar has decreased in the informal Cuban market following the government's announcement to establish a more flexible official exchange rate. This measure aims to align the exchange rate with supply and demand, thereby regulating the currency market and narrowing the gap with the informal market.
What is the floating exchange rate that the Cuban government has announced?
The floating exchange rate is a mechanism announced by the Cuban government that aims to align the official exchange rate with the dynamics of supply and demand in the market. However, the details and the implementation date of this measure are still unknown.
How does the currency situation affect the average Cuban?
The situation with foreign currency severely impacts the average Cuban, as inflation and the scarcity of foreign currency limit their purchasing power. The population turns to the informal market to obtain basic goods, which exacerbates daily economic difficulties.
What is the current value of the dollar and the euro in Cuba's informal market?
The current value of the dollar in the informal Cuban market is 320 Cuban pesos (CUP), while the euro is priced at 330 CUP. These values have shown recent fluctuations due to the economic measures announced by the government.
What role does the Freely Convertible Currency (MLC) play in the Cuban economy?
MLC is a virtual currency used in specific stores in Cuba, and its current value in the informal market is 265 CUP. MLC is essential for accessing certain products, as the Cuban government employs it in its commercial operations, reflecting its significance in the country’s economy.
Filed under:
