In an unusual setting for the informal currency market in Cuba, the prices of the dollar, euro, and freely convertible currency (MLC) experienced a significant drop in the last 24 hours.
According to data provided by the independent media outlet elTOQUE, the exchange rates are as follows:
Exchange rate today
Wednesday, December 25, 2024 - 12:31 in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 300 CUP
Exchange rate of the euro EUR to CUP according to elTOQUE: 308 CUP
Exchange rate of MLC to CUP according to TOQUE: 250 CUP
These numbers reflect a decrease of 5 pesos regarding the dollar, 7 in the European currency, and 10 in the freely convertible currency, continuing a trend of decline that has marked recent days.
Since February 10, the US dollar has not been valued at 300 pesos, and attention is now focused on how the market will react for the remainder of the year, especially after the regime announced that it will implement a floating rate in 2025.
Expectations regarding the "floating exchange rate"
The Cuban government announced last Wednesday that it will establish a floating official exchange rate, adjusted according to supply and demand, in an effort to compete with the informal market.
The rate, the details and effective date of which are unknown, is intended to regulate the currency market in a context where the informal currency exchange has so far dominated.
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 trade. Additionally, the use of cash dollars will be allowed in sectors like pharmacies, airports, and exporting agricultural producers.
In an economic context marked by inflation and the failure of previous economic policies, the regime is trying—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 24th:
1 USD: 300 CUP.
5 USD: 1,500 CUP.
10 USD: 3,000 CUP.
20 USD: 6,000 CUP.
50 USD: 15,000 CUP.
100 USD: 30,000 CUP.
Euros (315 CUP per euro):
1 EUR: 308 CUP.
5 EUR: 1,540 CUP.
10 EUR: 3,080 CUP.
20 EUR: 6,160 CUP.
50 EUR: 15,400 CUP.
100 EUR: 30,800 CUP.
Frequently Asked Questions about the Decline of Currencies in the Cuban Informal Market
Why are currency prices falling in Cuba?
Currency prices are falling in Cuba following the government's announcement of a more flexible official exchange rate, which will adjust according to market supply and demand. This move aims to compete with the informal market and reduce the disparity in currency values.
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 in accordance with market supply and demand. This measure aims to regulate the foreign exchange market, and the specific details, including the date of implementation, have not yet been announced.
How does the decline in currencies affect the average Cuban?
The decline in currency value severely impacts the purchasing power of the average Cuban, as inflation and the shortage of foreign currency limit their buying capacity. The population often turns to the informal market to obtain basic goods, which exacerbates their daily economic struggles.
What is the current value of foreign currencies in the informal Cuban market?
The current value of the dollar in the Cuban informal market is 300 CUP, while the euro is priced at 308 CUP, and the freely convertible currency (MLC) remains at 250 CUP. These values have been declining recently due to expectations set by the new economic measures.
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