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

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

Current events
CiberCuba Editorial Team

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

The price of foreign currencies in Cuba has entered a new period of stability in the last five days, according to the values published by the independent media elTOQUE based on monitoring the fluctuations of dollars, euros, and freely convertible currency (MLC) in purchase and sale announcements published on social media.

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

At 7:00 a.m. on this October 17, the dollar remains priced 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 the MLC to CUP according to TOQUE: 265 CUP.

The debate about whether the price of foreign currencies in the Cuban informal market should rise or fall reflects the interests and realities of different sectors in Cuban society.

Reasons why some wish for the price of foreign 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 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 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 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 enterprises: The Cuban government and state-owned enterprises operating in Cuban pesos face difficulties accessing foreign currency at reasonable prices when the exchange rate in the informal market is high. This can hinder the importation of essential products or the supply of stores in MLC, which exacerbates the shortage of basic goods.

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

Pressure on salaries in pesos: In an economy where the price of the dollar keeps rising, salaries in Cuban pesos are rapidly losing value. This reduces the purchasing power of the majority of the population that depends on state salaries, affecting their quality of life.