The value of currencies in the informal Cuban market continues to plummet following the regime's announcement of implementing a more flexible official exchange rate over the coming months, one that will respond to the dynamics of supply and demand in the market.
In recent hours, the dollar and the euro, two of the three currencies commonly used in street trading in Cuba, have continued to decline.
At dawn on Tuesday, the dollar is set at 305 CUP, which is five pesos less than the previous day.
The euro also falls by five units, decreasing to 315 CUP.
For now, this December 24th, only the Freely Convertible Currency (MLC) remains unchanged at 260 pesos.
In an article published this Tuesday by elToque, the independent media did not directly link the decline in the value of currencies—and the subsequent reevaluation of the national currency—with the announcement of a future floating official exchange rate.
"It could coincide, as it has in other instances, with the arrival of expatriates returning to celebrate the New Year with their families. The return of emigrants to the island results in an increase in the circulation of foreign currency and, consequently, a greater supply," the mentioned source stated.
"However, economists warn that this type of appreciation is temporary and does not reflect a structural improvement in the economy," they added.
Exchange rate today, December 24, 2024 - 7:56 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 305 CUP.
Euro (EUR) to CUP exchange rate according to elTOQUE: 315 CUP.
Exchange rate of MLC to CUP according to TOQUE: 260 CUP.
Expectations regarding the "floating exchange rate"
The Cuban government announced last Wednesday that it will establish a floating official exchange rate, adjusted to supply and demand, in an attempt to compete with the informal market.
The rate, the details and effective date of which are unknown, is intended to regulate the exchange market in a context where the informal currency market has so far been dominant.
This measure is part of a partial dollarization of the economy, which will impact strategic sectors such as wholesale and retail trade, tourism, and foreign commerce. Additionally, the use of cash in dollars will be allowed 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 define the economic reality for the population.
Equivalents of each available euro and U.S. dollar bill to Cuban pesos (CUP)
United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates on this December 24th:
1 USD: 305 CUP.
5 USD: 1,525 CUP.
10 USD: 3,050 CUP.
20 USD: 6,100 CUP.
50 USD: 15,250 CUP.
100 USD is equivalent to 30,500 CUP.
Euros (315 CUP for each euro):
1 EUR: 315 CUP.
5 EUR: 1,575 CUP.
10 EUR: 3,150 CUP.
20 EUR is equal to 6,300 CUP.
50 EUR: 15,750 CUP.
100 EUR is equivalent to 31,500 CUP.
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