The informal currency market in Cuba continues to reflect changing dynamics as 2024 comes to a close: while the US dollar (USD) remains stable at 300 pesos, the euro (EUR) has gained ground, reaching 310 CUP.
On the other hand, the MLC (freely convertible currency) rate is set at 250 pesos, with no changes observed in recent hours.
Exchange rate today
Monday, December 30, 2024 - 12:11 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: 310 CUP
Exchange rate of MLC to CUP according to TOQUE: 250 CUP
After several months of higher figures, the value of foreign currencies in the informal market started to decline following the Cuban government's announcement of plans to implement a more flexible official exchange rate in 2025, which would respond to the dynamics of supply and demand in 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 return of émigrés to the island results in an increase in the circulation of foreign currency and, therefore, a greater supply," indicated elToque in a recent article, seeking an alternative explanation for the sudden drop in the value of currencies in Cuba in recent days.
Equivalents 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 for 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 equals 30,000 CUP.
Euros (300 CUP per euro):
1 EUR = 310 CUP.
5 EUR = 1,550 CUP.
10 EUR = 3,100 CUP.
20 EUR = 6,200 CUP.
50 EUR = 15,500 CUP.
100 EUR equals 30,000 CUP.
Expectations regarding the "floating exchange rate"
On December 18, the Cuban government announced 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, aims to regulate the currency market in a context where the informal foreign exchange market 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 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 of the population.
Frequently Asked Questions about the Informal Currency Market in Cuba
What is the current exchange rate for the dollar and the euro in the Cuban informal market?
The exchange rate for the dollar is 300 Cuban pesos (CUP) and for the euro is 310 CUP, according to the informal market in Cuba at the end of 2024. These rates indicate a relative stability compared to previous months, although the euro has shown a slight upward trend in recent days.
What is the freely convertible currency (MLC) and how is it currently valued?
The Freely Convertible Currency (MLC) is a virtual currency used in specific stores in Cuba for the purchase of certain products. Currently, its value in the informal market is 250 CUP, and there have been no significant changes in recent hours.
What impact does the arrival of residents from abroad have on the foreign exchange market in Cuba?
The arrival of residents from abroad increases the flow of foreign currency, which can lead to a greater supply in the informal market. This situation often coincides with festive periods, such as the end of the year, although economists warn that these effects tend to be temporary and do not signify a structural improvement in the Cuban economy.
What measures is the Cuban government proposing for the currency exchange market in 2025?
The Cuban government has announced the implementation of a floating official exchange rate for 2025, adjusted to the supply and demand of foreign currency. This measure aims to compete with the informal market and regulate the currency exchange market, in the context of a partial dollarization of the economy that will impact sectors such as trade and tourism.
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