For the second consecutive day, the dollar and the euro have risen in price in the buying and selling in the Cuban informal market this Wednesday, as documented by elToque.
It has been months since both currencies experienced price increases on two consecutive days.
The dollar has climbed to 350 CUP, two pesos more compared to Tuesday.
The euro, for its part, rises to 353 CUP, one peso more than yesterday.
Only the Freely Convertible Currency (MLC) remains unchanged today, still valued at 275 CUP, a good distance from the other two currencies.
Exchange Rate Evolution
The median values for buying and selling currencies for this Wednesday—now including the Canadian dollar—indicate an upward trend in all currencies, except for the sale of the freely convertible currency (MLC).
Exchange rate today 03/19/2025 - 7:50 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 350 CUP.
Exchange rate of the euro EUR to CUP according to elTOQUE: 3253 CUP.
Exchange rate from MLC to CUP according to elTOQUE: 275 CUP.
Will the trend of the informal market change in the remainder of March?
The latest report from the Observatory of Currencies and Finances of Cuba (OMFi), after analyzing the dynamics of operations in the informal market, indicated that the conditions have been created for an increase in dollars and euros by the end of this month.
"Due to the situation in the informal currency market, until the first week of March (when a slight excess demand for dollars and euros begins to prevail), forecasting models indicate an increase in the value of international currencies between 2% and 5% relative to the Cuban peso for the month as a whole. For the MLC, a fluctuation in the opposite direction is expected. The MLC could lose between 5% and 8% of its value in relation to the Cuban peso," the bulletin states.
For March 31, rates are expected to be around 350-360 CUP per 1 USD and 352-362 CUP per 1 EUR in the central and maximum scenarios.
For the MLC, rates of 270-260 CUP are expected in the central and minimum scenarios.
However, economist Pavel Vidal specifies that "the forecasts are subject to the emergence of new economic policy announcements from the Cuban government; adjustments in the regulatory frameworks for the private sector; changes in market expectations; and modifications that may arise in the sanctions policy of the Trump Administration."
The aforementioned economic variables are influenced by several factors.
"Accelerating inflation, stagnant tourism, 'temporary' regulation of rice and bean prices, and an incoming law on land ownership and use confirm that Cuban authorities have failed to halt the collapse of the Cuban economy and are resorting to old formulas of proven ineffectiveness," warns Vidal.
Equivalences 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 on this March 19:
1 USD = 350 CUP.
5 USD = 1,750 CUP.
10 USD = 3,500 CUP.
20 USD = 7,000 CUP.
50 USD = 17,500 CUP.
100 USD = 35,000 CUP.
EUROS (EUR)
1 EUR = 353.
5 EUR = 1.765 CUP.
10 EUR = 3,530 CUP.
20 EUR = 7,060 CUP.
50 EUR = 17,650 CUP.
100 EUR = 35,300 CUP.
200 EUR = 70,600 CUP.
500 EUR = 176,500 CUP.
Cubans are closely watching the informal exchange rate of the dollar, euro, and MLC because it determines their real purchasing power in an economy characterized by scarcity and inflation.
The volatility of exchange rates in Cuba leads many residents on the island to closely monitor the developments in the informal market, seeking strategies to protect their purchasing power against the devaluation of the national currency.
In a country where salaries and pensions in Cuban pesos (CUP) are insufficient to meet basic needs, access to foreign currency has become essential for purchasing essential goods in stores that only accept foreign currency or for conducting transactions in the black market, where items are available that are not found in state-run commerce.
The constant devaluation of the Cuban peso against the dollar and the euro has created an inflationary spiral that especially impacts those who rely on incomes in the national currency
Frequently Asked Questions about the Informal Currency Market in Cuba
Why have the dollar and the euro increased in the Cuban informal market?
The dollar and the euro have experienced an increase in the Cuban informal market due to a slight excess in demand. The shortage of foreign currency and inflation in Cuba have led to a rise in the value of these currencies. Additionally, economic factors such as the partial dollarization of the Cuban economy and the opening of stores that only accept payments in foreign currency have intensified the demand for dollars and euros.
What is the current exchange rate of the dollar and the euro against the Cuban peso?
The current exchange rate reported for March 19, 2025, is 350 CUP for 1 USD and 353 CUP for 1 EUR. These figures indicate an increase compared to previous days, highlighting the upward trend of these currencies in the informal Cuban market.
What impact does the exchange rate have on the purchasing power of Cubans?
The exchange rate directly affects the purchasing power of Cubans, as most essential products are only available in foreign currency. The constant devaluation of the Cuban peso against the dollar and the euro has created an inflationary spiral, particularly impacting those who rely on income in national currency. This forces many citizens to turn to the informal market to protect their purchasing power.
What factors could influence the change in the trend of the informal currency market?
The trend of the informal currency market in Cuba can be influenced by various factors, such as new announcements of the government's economic policy, adjustments in regulatory frameworks for the private sector, changes in market expectations, and modifications to U.S. sanctions policy. These factors can alter the supply and demand for foreign currency, impacting exchange rates.
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