In recent hours, the value of the dollar has slightly increased in the Cuban informal market after several consecutive days of decline.
At dawn this Saturday, the US dollar stands at 300 pesos per unit, which is two pesos higher compared to its value the previous day, when it had fallen to 298 CUP.
The dollar, which nearly reached 400 pesos in May, had not fallen below 300 since February.
On December 28, the euro is valued at 300 pesos, highlighting the unusual situation where both the US dollar and the euro have the same average selling price in the informal market.
In the case of the Convertible Currency (MLC), it remains today at 250 CUP, a price reached this Friday.
The value of foreign currencies in the Cuban informal market has begun to decline since mid-month, following the regime's announcement of implementing a more flexible official exchange rate in 2025 that will respond to the supply and demand dynamics of the market.
"It could coincide, as in previous occasions, with the arrival of residents abroad who come to celebrate the New Year with their families. The arrival of emigrants to the island leads to an increase in the circulation of foreign currency, and therefore, a greater supply," noted elToque in a recently published article, seeking an alternative explanation for the abrupt decline in the value of currencies in Cuba.
"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 28, 2024 - 7:47 a.m. 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 the MLC to CUP according to the TOQUE: 250 CUP.
Equivalents of each available Euro and US Dollar banknote to Cuban Pesos (CUP)
United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates on December 28:
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 equals 30,000 CUP.
Euros (300 CUP for each euro):
1 EUR = 300 CUP.
5 EUR = 1,500 CUP.
10 EUR = 3,000 CUP.
20 EUR = 6,000 CUP.
50 EUR = 15,000 CUP.
100 EUR = 30,000 CUP.
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, whose details and effective date are unknown, aims to regulate the currency market in a context where the informal foreign exchange market has predominated until now.
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 such as pharmacies, airports, and exporting agricultural producers.
In an economic context characterized 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.
Frequently Asked Questions about the Informal Currency Market in Cuba
What is the current exchange rate of the dollar in the Cuban informal market?
The exchange rate of the dollar in the informal Cuban market is 300 Cuban pesos (CUP). This value shows a slight rebound after several days of consecutive declines, reflecting the instability of the informal market in Cuba.
How has the price of the euro fluctuated in Cuba's informal market?
The price of the euro remains at 300 CUP, matching the dollar in the informal market. This stability is unusual and reflects the current economic conditions 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 is 250 CUP, reflecting a certain stability compared to the dollar and the euro.
What factors have influenced the stability of the informal currency market in Cuba?
The stability of the informal currency market in Cuba is attributed to the worsening of the economic crisis, characterized by a decline in tourism, imports, and overall economic activity. This situation has resulted in a contraction in both the supply and demand for foreign currency, creating a "paralyzing effect" on the market.
What are the expectations regarding the new floating exchange rate in Cuba?
The Cuban government has announced the upcoming implementation of a floating official exchange rate, which will adjust according to market supply and demand. Although the details and effective date have not yet been specified, this measure is expected to regulate the currency market and compete with the informal market.
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