The foreign exchange rates in Cuba were calm this Sunday following a week marked by significant price drops in the informal market.
At dawn this Sunday, the US dollar remains at 300 pesos, a price it reached on Saturday after falling to 298 CUP on Friday.
On the other hand, the euro remains on this December 29th valued at 300 CUP, marking the second consecutive day of the unusual situation where both the US dollar and the euro have the same selling price in the informal market. As for the Convertible Currency (MLC), it continues at 250 CUP, a price it reached last Friday.
Exchange rate today, 12/29/2024 - 8:10 a.m. 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: 300 CUP.
Exchange rate of the MLC to CUP according to TOQUE: 250 CUP.
The value of currencies in the informal market began to decline following the Cuban government's announcement of the establishment of a more flexible official exchange rate in 2025, which will respond to the dynamics of supply and demand in the market.
"It could coincide, as it has on previous occasions, with the arrival of residents living abroad who are coming to celebrate the New Year with their families. The arrival of emigrants to the island leads to an increase in the circulation of foreign currencies and, consequently, a greater supply," stated elToque in a recent article, seeking an alternative explanation for the abrupt decline in the value of currencies in Cuba in recent days.
"However, economists warn that this type of appreciation is temporary and does not reflect a structural improvement in the economy," they added.
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 from December 29:
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 (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 about the "floating exchange rate"
On December 18, the Cuban government announced that it will establish a floating official exchange rate, adjusted to supply and demand, in an effort to compete with the informal market.
The rate, the details and effective date of which are unknown, aims to regulate the currency market in a context where the informal foreign exchange 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 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 attempting—once again—to regain control of a landscape where the rules of the informal market largely determine the economic reality of the population.
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