The main foreign currencies in Cuba saw a significant increase in their exchange rates on Sunday, January 5, 2025, highlighting a rise that reflects the high volatility of the informal market.
According to data from the independent site elTOQUE, the US dollar (USD) rose to 320 Cuban pesos (CUP), up from 315 CUP the previous day, marking an increase of 5 CUP.
For its part, the euro (EUR) rose from 320 CUP to 325 CUP, increasing by 5 CUP, while the freely convertible currency (MLC) remained stable at 250 CUP.
Exchange rate today, Sunday, January 5, 2025 - 00:07 in Cuba:
- Dollar exchange rateUSD to CUPThe translation of "según" to English is "according to."elTOQUEIt seems you have not provided any text to translate. Please share the text you'd like translated, and I'll be happy to help!320 CUP translates to "320 Cuban Pesos" in English
- Euro exchange rateEUR to CUP"According to"elTOQUE translates to "the touch" in EnglishPlease provide the text you'd like me to translate into English325 CUP translates to "325 CUP" in English, as it is a currency amount and does not require translation
- Exchange rate ofMLC to CUPThe word "según" translates to "according to" in EnglishelTOQUEIt seems you did not provide any text for translation. Please share the text you'd like translated, and I'll be happy to assist you250 CUP
This increase in major currencies is occurring in a context of growing economic uncertainty on the island, driven by the de facto dollarization that is increasingly impacting the Cuban economy.
Evolution of the exchange rate over time
The recent measures allowing the use of the dollar in specific sectors, along with the prolonged economic crisis, have led to increased demand for foreign currency in the informal market.
The rise in foreign currency prices directly affects Cuban citizens, who are facing difficulties accessing essential foreign currencies needed to purchase basic goods.
Moreover, sudden fluctuations in exchange rates undermine the purchasing power of remittances sent from abroad, which many Cuban families rely on.
The persistent devaluation of the Cuban peso and the lack of confidence in the national currency have driven more people to seek refuge in foreign currencies, worsening the economic crisis in the country. Experts warn that this trend could continue unless effective economic measures are implemented to stabilize the national currency.
The jump of up to 5 CUP in the main currencies in just 24 hours highlights the seriousness of the economic situation and leaves the population facing an increasingly uncertain outlook, where access to basic goods and services becomes more limited and expensive.
Frequently Asked Questions about the Rise of the Dollar and Euro in Cuba
Why have the prices of the dollar and the euro risen in Cuba?
The rise in the price of the dollar and the euro in Cuba is primarily due to the high demand for foreign currencies in the informal market, driven by the partial dollarization of the Cuban economy and a lack of confidence in the Cuban peso. The population is looking to protect their savings and access goods and services that are now traded in dollars.
How does this increase affect Cubans who depend on remittances?
The increase in exchange rates erodes the purchasing power of the remittances that Cubans receive from abroad, as they obtain fewer Cuban pesos for the same amount of dollars or euros. This further complicates access to basic products and essential services.
What is the Freely Convertible Currency (MLC) and why does it remain stable?
The Freely Convertible Currency (MLC) is a virtual currency used in state-run stores in Cuba to capture foreign currencies. Its exchange rate remains stable compared to the dollar and the euro because it is more controlled by the dynamics of the domestic market, reflecting lower volatility in its valuation.
What measures has the Cuban government taken in response to the current economic situation?
The Cuban government has implemented partial dollarization measures, allowing the use of the dollar in specific sectors such as wholesale and retail trade. However, these actions have increased the demand for foreign currency in the informal market and have not succeeded in stabilizing the value of the Cuban peso.
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