After nearly a month of consecutive price drops, the dollar sees an increase in its value in the informal Cuban market this Tuesday morning. As of 7:00 a.m. local time on July 23, the dollar was priced at an average of 305 pesos, marking a rise of five pesos compared to the previous day.
The price of the U.S. dollar hadn't increased since June 25, when it reached 365 CUP in the informal market, according to reports from the independent outlet elToque. Since then, it has been on a slow but steady decline, only occasionally stabilizing for short periods.
This Tuesday, the euro and the Freely Convertible Currency (MLC) have maintained their prices from the previous day: the European currency at 315 CUP and the MLC at 270 CUP.
Is This a Turning Point?
Will this uptick in the dollar's value signify a change in the trend observed over the past month? That’s the question on many minds today.
So far, the reaction to the wave of economic measures announced by the Cuban government last week, including the reintroduction of cash management for foreign currencies in Cuba, had been a decline in the informal values of dollars, euros, and MLC.
Exchange Rates as of 07/23/2024 - 7:10 a.m. in Cuba:
USD to CUP according to elToque: 305 CUP
EUR to CUP according to elToque: 315 CUP
MLC to CUP according to elToque: 270 CUP
The informal exchange rate in Cuba provided here is not officially recognized or supported by any financial or governmental entity.
Conversion Rates of available bills in euros and U.S. dollars to Cuban pesos (CUP):
U.S. Dollar (USD) to Cuban Peso (CUP), according to this Tuesday’s rates:
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):
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
These rates and conversions help understand the relationship between these currencies and the Cuban peso in the current market.
Cuban Government Stance on Official Exchange Rate
Amid the desperation as the economy sinks rapidly, Prime Minister Manuel Marrero Cruz stated last week that they cannot establish a new exchange rate "overnight."
The Cuban official argued that a new official exchange rate "would bring a devaluation of the peso and an undesirable impact on inflation, prices, and low salaries," as if that weren't already the current reality. He indicated that there would be a new resizing of the exchange market, but warned that it is complicated under the current economic conditions, and said it would be implemented "very gradually and with great care."
The regime admitted the failure of the official 1x120 exchange rate imposed in August 2022 as part of the economic reordering, but has not yet found a way to determine a rate that would eliminate the informal foreign currency market.
Manuel Marrero Cruz did not miss the opportunity to reiterate his rejection of what he called the "illegal foreign currency market," stating that it should be ended. In an argument he has used on other occasions, he said it is not possible for "a country abroad and from a computer, to project what the exchange rate should be in the country," in a veiled reference to the independent outlet elToque.
Understanding Cuba's Informal Exchange Rate Changes
Given the recent shifts in Cuba's informal exchange rates, many are left with questions. Below are some frequently asked questions and their answers to help clarify the situation.
Why has the dollar's value increased in the informal Cuban market?
The recent increase in the dollar's value may be a reaction to the Cuban government's new economic measures, including the return of cash management for foreign currencies in Cuba.
How often do the exchange rates change in Cuba's informal market?
Exchange rates in Cuba's informal market can fluctuate daily, influenced by various economic factors and government policies.
What is the current stance of the Cuban government on the official exchange rate?
The Cuban government, represented by Prime Minister Manuel Marrero Cruz, has stated that establishing a new official exchange rate is complex and will be done gradually to avoid further economic impact.