The Freely Convertible Currency takes a step back in informal buying and selling in Cuba

The MLC continues to be crucial for accessing many essential products sold in stores designated for that purpose by the Cuban government.

Current Affairs
CiberCuba Editorial Team

19/11/2024 - 7:37am (GMT-5) |

The value of the Freely Convertible Currency (MLC) takes a step back and loses in just a few hours the price increase in the average sale that was announced this Monday.

At dawn on November 19, the virtual currency used by the Cuban regime in designated stores has returned to 265 CUP, four pesos lower compared to the previous day.

Euros and dollars, for their part, have remained at their values from the past few days until the conclusion of this report.

The US dollar remains valued at 328 pesos, while the euro is at 345.

Exchange rate today, November 19, 2024 - 7:30 a.m. in Cuba:

Exchange rate of the USD to CUP according to elTOQUE: 328 CUP.

Exchange rate of the Euro EUR to CUP according to elTOQUE: 345 CUP.

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

The price stability of dollars, euros, and MLC in recent weeks—marked by slight increases or decreases in value—contrasts with the significant fluctuations seen in the first seven months of 2024, which were characterized by sharp streaks of both price increases and declines.

Convertible Currency or cash?

At the beginning of October, the independent media outlet elTOQUE revealed that in some stores using freely convertible currency, the Cuban government had started to allow the purchase of products with cash in foreign currency.

Workers from the Caribe Store Chain and Cimex S.A. stated at that time to the mentioned media outlet that some establishments were already accepting payments in dollars and euros, while others were preparing to start receiving cash in foreign currencies. However, this measure has not yet been formalized.

In July, Prime Minister Manuel Marrero announced during a session of the National Assembly of People's Power (ANPP) that cash transactions in foreign currency would be allowed in sectors such as tourism, despite contradicting the government's promotion of a banking policy.

Marrero argued that this measure is necessary to attract foreign currency, as the country is losing income due to a lack of access to the dollars circulating in the private sector and the informal currency market.

Amid uncertainty regarding the future of the MLC, a new store in Convertible Foreign Currency (MLC) was inaugurated in Havana this Friday, aiming to source from a Basque supplier.