The price of foreign currencies in Cuba is plummeting without restraint following the recent announcement by the Cuban government to establish a more flexible official exchange rate by 2025, in response to the dynamics of supply and demand in the market.
In recent hours, the three key currencies in the informal market have continued to decline.
At dawn this Monday, the dollar is priced at 310 CUP, seven pesos less than the previous day.
The euro also falls; the European currency drops by five pesos, bringing it down to 320 CUP.
There was also a drop in the freely convertible currency (MLC), which is now at 260 pesos, three units lower than this Sunday.
The regime's announcement regarding the so-called "floating exchange rate," the details and implementation date of which remain unknown, aims to regulate the foreign exchange market in a context where the informal currency market predominates, establishing the actual prices of goods consumed by the population.
Exchange rate today, 12/23/2024 - 7:47 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 310 CUP.
Exchange rate of the euro (EUR) to CUP according to elTOQUE: 320 CUP.
Exchange rate of the MLC to CUP according to TOQUE: 260 CUP.
The strategy to control the foreign exchange market
The Cuban government announced last Wednesday that it will establish a flexible official exchange rate, aligned with supply and demand, in an attempt 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, affecting strategic sectors such as wholesale and retail trade, tourism, and foreign trade. It will also 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 over a landscape where the rules of the informal market largely define the economic reality for the population.
Equivalencies of each available Euro and US dollar bill to Cuban pesos (CUP)
United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates on December 23rd:
Currency conversion to pesos:
1 USD = 310 CUP.
5 USD = 1,550 CUP.
10 USD = 3,100 CUP.
20 USD = 6,200 CUP.
50 USD = 15,500 CUP.
100 USD = 31,000 CUP.
Euros (330 CUP for each euro):
1 EUR = 320 CUP.
5 EUR = 1,600 CUP.
10 EUR = 3,200 CUP.
20 EUR = 6,400 CUP.
50 EUR = 16,000 CUP.
100 EUR = 32,000 CUP.
Frequently Asked Questions about the Informal Currency Market in Cuba
Why has the price of foreign currency decreased in the informal Cuban market?
The price of foreign currencies has decreased following the Cuban government's announcement of the implementation of a more flexible official exchange rate that will respond to market supply and demand. This aims to regulate the exchange market and narrow the gap with the informal market.
What is the "floating exchange rate" announced by the Cuban government?
The "floating exchange rate" is a mechanism that will adjust the official exchange rate based on market supply and demand. Specific details and the effective date of this measure, which aims to compete with the informal currency market, are still unknown.
How does the situation in the foreign exchange market affect the average Cuban?
The situation in the foreign exchange market significantly impacts the average Cuban, as inflation and the scarcity of foreign currency limit their purchasing power. Most of the population turns to the informal market to acquire basic goods, which exacerbates their daily economic challenges.
What is the current value of foreign currencies in the Cuban informal market?
The current value of the dollar in the Cuban informal market is 310 CUP, while the euro is quoted at 320 CUP and the Convertible Currency (MLC) is at 260 CUP. These values have been declining recently 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 260 CUP. It is essential for accessing certain products, as the Cuban government uses it for its commercial operations, highlighting its significance in the country’s economy.
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