With a new drop, the US dollar has reacted in the past few hours in the Cuban informal market to the economic measures announced by the government this Wednesday, including the announcement that the regime will once again accept cash foreign currencies.
As of 7:00 a.m. (local time) on July 18, the dollar is valued at 305 CUP. This figure represents a decrease of five units compared to the previous day.
The Freely Convertible Currency (MLC) is also down, with its average sale in the informal market dropping to 275 CUP, which is five pesos less than its value yesterday.
Only the euro remains unchanged this Thursday, maintaining an average valuation of 320 pesos.
Current Exchange Rates in Cuba
Exchange rates as of 13:10 a.m. on July 18, 2024, in Cuba:
- USD to CUP according to elTOQUE: 305 CUP
- EUR to CUP according to elTOQUE: 320 CUP
- MLC to CUP according to elTOQUE: 275 CUP
The informal exchange rate in Cuba provided here is not officially recognized or backed by any financial or governmental entity.
Cuban Government's Stance on New Official Exchange Rates
Amid a wave of announcements and new measures revealed this Wednesday by the Cuban government, which reflect the desperation over an economy sinking rapidly, Prime Minister Manuel Marrero Cruz stated that they cannot establish a new exchange rate "overnight."
The high-ranking official argued that a new official exchange rate “would bring a devaluation of the peso and an undesired impact on inflation, prices, and low wages,” as if that is not already the current reality.
He indicated that there will be a new resizing of the exchange market but warned that it is complex under the current economic conditions and said it would be implemented "very gradually and with great care."
It is a fact that the regime has had to admit the failure of the official exchange rate of 1x120 imposed in August 2022 as part of the economic restructuring, but it has yet to find a way to establish a rate that eliminates the informal currency market.
With such a public statement, the Castro regime rules out for now modifying the official exchange rate, despite it circulating outside the real economic conditions and showing a profound mismatch with the informal market rate, which this Wednesday stands at 305 CUP per USD.
During his intervention, Manuel Marrero Cruz did not miss the opportunity to reiterate his rejection of what he called the “illegal currency market,” which must be ended, as it is not possible that “from a foreign country and from a computer, it is projected what the exchange rate should be in the country,” he said in a veiled reference to elToque.
Currency Equivalencies
Equivalencies of each available bill of euros and US dollars to Cuban pesos (CUP) as of Thursday, July 18:
- US Dollar (USD) to CUP:
- $1 USD: 305 CUP
- $5 USD: 1,525 CUP
- $10 USD: 3,050 CUP
- $20 USD: 6,100 CUP
- $50 USD: 15,250 CUP
- $100 USD: 30,500 CUP
- Euros (EUR) to CUP:
- 1 EUR: 320 CUP
- 5 EUR: 1,600 CUP
- 10 EUR: 3,200 CUP
- 20 EUR: 6,400 CUP
- 50 EUR: 16,000 CUP
- 100 EUR: 32,000 CUP
- 200 EUR: 64,000 CUP
These rates and equivalencies are useful for understanding the relationship between these currencies and the Cuban peso in the current market.
Understanding the Impact of Cuba's Economic Measures on the Informal Market
Given the recent changes and statements from the Cuban government, it is important to understand how these measures will affect the informal market and the overall economy. Here are some common questions and answers to provide clarity.
Why did the US dollar value drop in the Cuban informal market?
The value dropped due to new economic measures announced by the Cuban government, including the acceptance of cash foreign currencies, which impacted the informal exchange rates.
What is the official stance of the Cuban government on changing the exchange rate?
The government has stated that a new exchange rate cannot be established "overnight" due to potential negative impacts on inflation, prices, and wages. They plan to implement changes gradually and carefully.
How does the informal exchange rate compare to the official rate?
The informal exchange rate is significantly higher than the official rate, with the dollar valued at 305 CUP in the informal market compared to the official rate of 1x120 imposed in August 2022.
What are the current informal exchange rates for USD and EUR in Cuba?
As of July 18, 2024, the informal exchange rate for USD is 305 CUP and for EUR is 320 CUP.