The three key currencies in Cuba's informal market experienced a significant drop in value this Friday, according to data collected by the independent media outlet elToque from social media ads and other classified sites. In recent hours, the U.S. dollar, the euro, and the Moneda Libremente Convertible (MLC) have each seen a five-peso decline compared to their values from the previous day.
Although the decline is gradual and not as steep as the 20 to 30-peso drops observed in mid-May and early June, the three currencies are steadily decreasing. As of 7:00 a.m. local time on July 19, the dollar was valued at 300 CUP, the euro at 315 CUP, and the MLC at 270 CUP. This downward trend in the street market values of these reference currencies appears to be a reaction to the wave of economic measures announced by the Cuban government in recent days.
Current Exchange Rates in Cuba
Exchange rate as of 07/19/2024 - 13:10 a.m. in Cuba:
USD to CUP according to elToque: 300 CUP.
EUR to CUP according to elToque: 315 CUP.
MLC to CUP according to elToque: 270 CUP.
It is important to note that Cuba's informal exchange rates are not officially recognized or backed by any financial or governmental entity.
In the midst of an economic freefall, Prime Minister Manuel Marrero Cruz stated this week that a new official exchange rate cannot be established "overnight." He argued that a new official rate would lead to a devaluation of the peso and an undesirable impact on inflation, prices, and low wages, as if that were not already the current reality.
Marrero indicated that a redesign of the exchange market is forthcoming, but he warned that it is complex under the current economic conditions and will be implemented "very gradually and with great care." The regime has acknowledged the failure of the official 1x120 exchange rate imposed in August 2022 as part of the economic restructuring but has yet to find a way to determine a rate that would eliminate the informal currency market.
With such a public statement, the Cuban regime has ruled out modifying the official exchange rate for now, despite its disconnect from the real economic conditions. The informal street market rate for the USD was 305 CUP as of Wednesday. During his address, Marrero did not miss the chance to reiterate his opposition to what he referred to as the "illegal currency market," which he claimed should be ended. He criticized the notion that "from a foreign country and a computer, one can project what the exchange rate should be in the country," in a veiled reference to elToque.
Currency Equivalents in Cuban Pesos (CUP)
U.S. Dollar (USD) to Cuban Peso (CUP), based on exchange rates this Friday, July 19:
- 1 USD: 300 CUP
- 5 USD: 1,500 CUP
- 10 USD: 3,000 CUP
- 20 USD: 6,000 CUP
- 50 USD: 15,000 CUP
- 100 USD: 30,000 CUP
Euros (EUR) to Cuban Peso (CUP):
- 1 EUR: 315 CUP
- 5 EUR: 1,575 CUP
- 10 EUR: 3,150 CUP
- 20 EUR: 6,300 CUP
- 50 EUR: 15,750 CUP
- 100 EUR: 31,500 CUP
- 200 EUR: 63,000 CUP
- 500 EUR: 157,500 CUP
These rates and equivalents are useful for understanding the relationship between these currencies and the Cuban peso in today's market.
Understanding the Currency Decline in Cuba
Here are some questions and answers to help clarify the current situation regarding currency values in the Cuban informal market.
Why are the dollar, euro, and MLC values dropping in Cuba?
The values are dropping due to a reaction to recent economic measures announced by the Cuban government, along with other market factors.
What is the current exchange rate for the USD in Cuba?
As of July 19, the USD is valued at 300 CUP in the informal market.
Will the Cuban government establish a new official exchange rate soon?
No, the government has stated that a new official exchange rate cannot be established "overnight" and will be implemented very gradually.