The informal foreign exchange market in Cuba continues to experience significant fluctuations in the exchange rates of the US dollar (USD), the euro (EUR), and the Convertible Currency (MLC).
According to recent data, on January 11, 2025, the USD is quoted at 340 Cuban pesos (CUP), the EUR at 341 CUP, and the MLC at 240 CUP.
Exchange rate in Cuba Saturday, January 11, 2025 - 10:00
- Exchange rate of the dollar (USD) to Cuban pesos (CUP): 340 CUP
- Exchange rate of the euro (EUR) to Cuban pesos (CUP): 341 CUP
- Exchange rate from (MLC) to Cuban pesos CUP: 240 CUP
Since early January, an upward trend has been observed in the rates of USD and EUR in the informal market. On January 5, the USD recorded an increase of up to five CUP in 24 hours, reaching 305 CUP, while the EUR also showed significant increases.
This behavior reflects a growing demand for foreign currency, driven by the dollarization of the Cuban economy and the opening of new establishments that operate in USD.
Exchange Rate Evolution
The recent opening of the supermarket at 3rd and 70 in Havana, which sells products in dollars, has heightened the population's need to access these currencies to purchase basic goods.
In contrast, the MLC has shown a downward trend, trading at 240 CUP on January 11, 2025, a decrease from the 265 CUP recorded in December 2024.
This decline is attributed to consumers' preference for the USD and EUR, which are considered more stable and widely accepted in transactions both within and outside the country.
The instability in the informal currency market reflects the complex economic situation in Cuba, characterized by high inflation, shortages of basic goods, and restrictions on access to foreign currency.
These fluctuations directly impact the purchasing power of citizens, who face increasing challenges in meeting their daily needs.
Uncertainty about the future of the MLC after the partial dollarization
The recent partial dollarization of the Cuban economy has created uncertainty about the future of the freely convertible currency (MLC).
This currency, introduced by the government to attract foreign exchange, has been used in state-run stores for the purchase of essential goods. However, with the opening of establishments that operate exclusively in US dollars, the relevance and stability of the MLC are being called into question.
According to reports, the implementation of partial dollarization affects strategic sectors such as wholesale and retail trade, tourism, and foreign trade.
The measure has increased the demand for foreign currencies, particularly dollars and euros, to the detriment of the MLC. The preference for more stable and universally accepted currencies has resulted in a depreciation of the MLC in the informal market, where its value has decreased in comparison to the dollar and the euro.
Additionally, cases have been reported in which state stores have stopped accepting payments in MLC, restricting transactions solely to cash in dollars or cards backed by foreign currency.
This situation has raised concerns among citizens who hold balances in MLC, as they see their purchasing power restricted and fear a possible demonetization of this currency.
The uncertainty surrounding the MLC reflects the complexity and volatility of the Cuban economic landscape. The coexistence of multiple currencies and the introduction of new economic measures without clear and transparent communication from the government have contributed to the public's distrust in current monetary policies.
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