This Friday, the average sale price of the three main currencies in Cuba's informal market saw a significant drop. After several days at 300 pesos, the Freely Convertible Currency (MLC) also declined, falling to 295, five units less than its value in recent days. Both the U.S. dollar and the euro also dropped by five pesos. The U.S. dollar fell to 355 and the euro to 365, according to values recorded at 7 a.m. on May 24 (local Cuban time). At the moment, the two currencies maintain a ten-peso difference between them.
This decline confirms the downward trend that currencies have been experiencing since mid-May. The U.S. dollar has dropped 40 pesos over nine consecutive days. While many Cubans view the decline in the informal currency prices as positive for their wallets, they question why the prices of consumer goods have not decreased accordingly, which they consider a fair response to the current circumstances.
Current Exchange Rates on May 24, 2024 - 7:00 a.m. in Cuba:
Dollar (USD) to CUP according to elTOQUE: 355 CUP
Euro (EUR) to CUP according to elTOQUE: 365 CUP
MLC to CUP according to elTOQUE: 295 CUP
Alternative Exchange Rates from Other Platforms:
Dollar (USD): Buy at 349 CUP, Sell at 356 CUP
Euro (EUR): Buy at 359 CUP, Sell at 365 CUP
MLC: Buy at 292 CUP, Sell at 298 CUP
The informal exchange rate in Cuba provided here is not officially recognized or backed by any financial or governmental entity. Below are the conversions for each available denomination of euros and U.S. dollars to Cuban pesos (CUP) based on the exchange rates from Thursday, May 23.
U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD: 355 CUP
- 5 USD: 1,775 CUP
- 10 USD: 3,550 CUP
- 20 USD: 7,100 CUP
- 50 USD: 17,750 CUP
- 100 USD: 35,500 CUP
Euro (EUR) to Cuban Peso (CUP):
- 1 EUR: 365 CUP
- 5 EUR: 1,825 CUP
- 10 EUR: 3,650 CUP
- 20 EUR: 7,300 CUP
- 50 EUR: 18,250 CUP
- 100 EUR: 36,500 CUP
This information can be useful for calculating the cost in Cuban pesos of any amount of dollars or euros. These conversions are based on exchange rates of 360 CUP per dollar and 370 CUP per euro.
Why Are Informal Currency Prices Falling in Cuba?
The independent media outlet elTOQUE offered its perspective on the significant drop in the value of dollars, euros, and MLC over the past week, mentioning several factors that could be influencing the decline, although it does not consider the current situation to be a real revaluation of the national currency.
In its analysis, an article by Pavel Vidal Alejandro suggests that one reason could be the "market sentiment," where "a growing number of people started to believe that the currency prices were excessively high and opted to sell before a potential drop," thereby increasing the supply. Vidal noted that since mid-May—coinciding with the start of the decline of the three reference currencies—there has been a notable increase in the supply of currencies in monitored virtual spaces.
On the other hand, elTOQUE pointed out that it is normal for "temporary corrections to occur after an extended period of rising market prices," emphasizing that since 2022, there have been six significant consecutive drops in currency values, some lasting weeks, although they later recovered. However, the economic analyst believes that the fundamental factors explaining the internal and external imbalances of the Cuban economy have not changed, and therefore "the current inflection of the rate should not be associated with a long-term trend modification."
Meanwhile, the Cuban government remains silent. In another perspective on the presumed cause of the currency drop in Cuba, Cuban economist Emilio Morales stated in an interview with CiberCuba that it is "impossible" for the Cuban peso to have revalued on its own. Morales attributed the decline in informal currency prices to a non-economic reason: manipulations by the "ciberclarias" of the University of Information Sciences (UCI) on the island. According to Morales, the only news that could revalue the peso on its own is "the fall of the government." He also dismissed the idea that the drop in the prices of dollars, euros, and MLC in Cuba is due to a supposed injection of currencies into the informal market.
Understanding the Decline in Informal Currency Prices in Cuba
This section addresses common questions and provides insights into the recent decline in informal currency prices in Cuba, based on expert analyses and reports.
What caused the recent drop in informal currency prices in Cuba?
Several factors may be influencing the decline, including increased market sentiment that currency prices were too high and a subsequent rise in supply. Additionally, temporary corrections after prolonged periods of rising prices are common.
Is the decline in currency prices a sign of revaluation for the Cuban peso?
Experts, including Pavel Vidal Alejandro and Emilio Morales, do not believe the decline indicates a real revaluation of the Cuban peso. Fundamental economic imbalances remain unaddressed, and other non-economic factors may be at play.
How do recent currency price changes impact everyday Cubans?
While many Cubans welcome lower informal currency prices, they question why consumer goods prices have not also decreased, which would reflect a fairer economic response to the current situation.
What are the current exchange rates for USD, EUR, and MLC in Cuba?
As of May 24, 2024, the exchange rates are 355 CUP for USD, 365 CUP for EUR, and 295 CUP for MLC according to elTOQUE. Alternative platforms provide slightly different rates.