A few hours before the year ends, the U.S. dollar shows a slight recovery in the Cuban informal market, reaching 304 Cuban pesos (CUP) according to the rate reported on Tuesday, December 31.
The euro remained unchanged at 310 CUP, while the Convertible Currency (MLC) continues at 250, with no significant changes compared to previous days.
This surge in the dollar, which rose four pesos in the last 24 hours, reflects the typical fluctuations of the informal market in Cuba, influenced by the high demand for foreign currency in an economic context characterized by resource scarcity and the limited offerings of the official banking system.
Exchange rate today
Tuesday, December 31, 2024 - 12:09 in Cuba
Exchange rate of the dollar USD to CUP according to elTOQUE: 304 CUP
Exchange rate of the euro EUR to CUP according to elTOQUE: 310 CUP
Exchange rate of the MLC to CUP according to TOQUE: 250 CUP
The evolution of exchange rates will remain a key indicator for Cubans, who rely on access to these currencies to purchase products in MLC stores or conduct transactions on international platforms.
After several months of rising figures, the value of currencies in the informal market began to decline following the announcement by the Cuban government to establish 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 other occasions, with the arrival of residents abroad returning to celebrate the New Year with their families. The arrival of émigrés to the island means 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 sudden drop in the value of foreign currency in Cuba in recent days.
Equivalents of each available banknote in euros and US dollars to Cuban pesos (CUP)
U.S. Dollar (USD) to Cuban Peso (CUP), according to the exchange rates for December 29th:
1 USD = 304 CUP.
5 USD = 1,520 CUP.
10 USD = 3,040 CUP.
20 USD = 6,080 CUP.
50 USD = 15,200 CUP.
100 USD = 30,400 CUP.
Euros (300 CUP for each 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 = 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, details of which and the date of implementation are unknown, aims to regulate the exchange market in a context where the informal currency 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 commerce. Additionally, the use of cash in dollars will be permitted in sectors like pharmacies, airports, and exporting agricultural producers.
In an economic context characterized by inflation and the failure of previous economic policies, the regime is once again attempting 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 of the dollar in the Cuban informal market?
The exchange rate of the dollar in the Cuban informal market is 304 Cuban pesos (CUP). This figure indicates a slight rebound following days of consecutive declines, highlighting 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 310 CUP. This stability is unusual, matching the dollar in the informal market and reflecting 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 economic crisis, characterized by a decline in tourism, imports, and overall economic activity. This situation has resulted in a contraction in the supply and demand for foreign currency, creating a "paralyzing effect" in the market.
What are the expectations regarding the new floating exchange rate in Cuba?
The Cuban government has announced the future implementation of a floating official exchange rate, which will adjust according to market supply and demand. Although details and the effective date have not yet been specified, this measure is expected to aim at regulating the foreign exchange market and competing with the informal market.
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