The US dollar continues to be valued at 300 pesos in the Cuban informal market, holding steady at the level it reached since hitting that figure in February of this year, according to records from elToque, the independent platform dedicated to tracking the Cuban informal exchange rate.
This level, which set a record at the time, has experienced ups and downs amidst the economic volatility that characterizes the country.
In an economic context that remains complex for Cuba, marked by inflation and a scarcity of essential goods, it was also reported that the euro has dropped by three pesos. On Wednesday, the currency was valued at 308, and by Thursday, it is worth 305.
For its part, the freely convertible currency (MLC) also remained at 250 CUP, the same as the previous day.
Exchange rate Thursday, December 26, 2024 - 12:07 in Cuba:
Exchange rate of the USD to CUP according to elTOQUE: 300 CUP
Exchange rate of the euro (EUR) to CUP according to elTOQUE: 300 CUP
Exchange rate of MLC to CUP according to TOQUE: 250 CUP
The decline occurs in the context of increasing frustration within the private sector due to recent restrictions imposed by the government, particularly with the enforcement of Resolution 56/2024 from the Ministry of Domestic Trade, which severely limits wholesale marketing, jeopardizing the survival of micro, small, and medium-sized enterprises (Mipymes), non-agricultural cooperatives (CNA), and self-employed workers (TCP).
The new regulations require Mipymes and cooperatives to sell exclusively through state-owned companies or government-controlled distributors.
Additionally, it sets restrictive deadlines of 90 days for updating licenses and 120 days for liquidating wholesale inventories. Noncompliance results in severe penalties, including fines, seizures, and the cancellation of operating licenses.
Therefore, the current stability may be temporary due to the inherent volatility of the informal market and the general economic conditions of the island. Additionally, external factors such as the arrival of remittances or political decisions could influence the dollar's exchange rate in the short term.
The upcoming celebrations for New Year's Eve and New Year's Day
Meanwhile, Cubans continue to grapple with the challenges of a struggling economic system, where the dollar, at 300 pesos, remains a headache for many families who cannot afford food at the end of the year.
Recent reports indicate that the price of a pound of pork exceeds 1,400 pesos in the informal market, turning it into a luxury for most of the population.
Additionally, other basic components of the Cuban diet have also seen significant increases.
The native rice is sold for about 200 pesos per pound, while black and red beans reach up to 450 pesos per pound.
These prices are prohibitive, considering that the minimum wage in Cuba is 2,100 pesos per month.
The situation worsens with the removal of subsidies for basic goods, leaving many families without access to essential products at affordable prices. However, the government recently confirmed that the supply rationing system will be guaranteed until 2025.
In this context, the stability of the dollar in the informal market does not translate into a tangible improvement for the population.
The purchasing power of Cubans continues to decline, and the year-end festivities are overshadowed by uncertainty and the inability to uphold culinary traditions deeply rooted in the national culture.
Frequently Asked Questions about the Informal Currency Market in Cuba
What is the current exchange rate of the dollar in the informal Cuban market?
The exchange rate of the dollar in the Cuban informal market is 300 Cuban pesos (CUP). This value has remained stable since February 2024, reflecting the ongoing economic crisis in Cuba.
How has the price of the euro changed in Cuba's informal market?
The price of the euro has recently dropped to 305 CUP, having previously been at 308 CUP. This fluctuation reflects the volatility of the informal market in Cuba.
What is the Freely Convertible Currency (MLC) and what is its current value in the informal market?
The Freely Convertible Currency (MLC) is a virtual currency used in specific stores in Cuba. Currently, its value in the informal market stands at 250 CUP, remaining stable within the current economic context.
How do government restrictions affect the informal currency market in Cuba?
The restrictions imposed by the government, such as Resolution 56/2024 that limits wholesale marketing, have generated frustration in the private sector and affected the stability of the informal market. This endangers the survival of small and medium-sized enterprises, cooperatives, and self-employed workers, further complicating the Cuban economy.
How does the situation in the foreign exchange market affect the purchasing power of Cubans?
The stability of the dollar at 300 pesos does not improve the purchasing power of Cubans, as they face persistent inflation and shortages of essential goods. This limits their access to basic products, exacerbating economic hardships.
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