Exchange rates for euros, dollars, and MLC in informal trading in Cuba for today

Today, we analyze the main reasons why some wish for the dollar's price to increase, while others prefer it to remain stable or decrease.

Current Events
CiberCuba Editorial Team

16/10/2024 - 7:23am (GMT-5) |

The exchange rates remain unchanged in their average selling value this Wednesday, according to the independent media outlet elTOQUE, based on monitoring price fluctuations of dollars, euros, and Convertible Currency (MLC) in buying and selling announcements published on social media.

At dawn on this October 16, the euro is priced at 340 CUP and the dollar at 325, the latter value reached by the U.S. currency on October 12.

In the case of the Freely Convertible Currency (MLC), it remains at 265 CUP, a price it has held since October 9, when it suddenly dropped by five pesos.

"Very cheap still. Considering the current level of crisis, by 2025 it should exceed 400 CUP, as the demand for services and basic needs will be greater," commented a user on social media regarding yesterday's rate, which was similar to today's.

The debate over whether the price of the dollar in the informal Cuban market should rise or fall reflects the interests and realities of various sectors within Cuban society.

These are the main reasons why some people want the dollar price to rise, while others prefer it to remain stable or decrease:

Reasons why some want the price of the dollar 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 depend 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 individuals 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 realize significant gains.

Reasons why others prefer the dollar to decrease or remain stable:

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

Impact on State-Owned Enterprises: The Cuban government and state-owned enterprises operating in Cuban pesos face challenges in accessing foreign currency at reasonable prices when the exchange rate in the informal market is high. This can complicate the import of essential products or the supply of stores in MLC, exacerbating the shortage of basic goods.

Increase in social inequality: A higher dollar in the informal market benefits those with access to foreign currency, primarily families with connections abroad or those receiving remittances, while exacerbating the difficulties for 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 diminishes the purchasing power of the majority of the population that depends on state wages, negatively impacting their quality of life.