For the third straight day this Thursday, the US dollar has increased in value in the Cuban informal market, marking what seems to be a new upward trend after nearly a month of decline. As of 7:00 a.m. (local time) on July 25, the American currency is trading at an average of 315 Cuban Pesos (CUP) in street transactions in Cuba. This represents an increase of five units compared to the previous day.
The euro has also seen a jump this Thursday, rising 10 pesos to 325 CUP after staying at 315 CUP for several days. Meanwhile, the Freely Convertible Currency (MLC) remains unchanged at 270 pesos.
On social media, many Cubans are linking this week's shift in the informal market to the economic measures announced by the Cuban government earlier this month. These measures include the return to cash payments in foreign currencies for certain services in Cuba.
This latest increase forms part of the perpetual fluctuation in the island's informal currency market, coming after a sustained decline in all three currencies. As of 7:15 a.m. on July 25, 2024, the exchange rates in Cuba are as follows:
Current Exchange Rates in Cuba
USD to CUP according to elTOQUE: 315 CUP.
EUR to CUP according to elTOQUE: 325 CUP.
MLC to CUP according to elTOQUE: 270 CUP.
The informal exchange rates provided here are not officially recognized or supported by any financial or governmental entity.
Equivalents for each available bill of euros and US dollars to Cuban pesos (CUP) as of Thursday, July 25:
Currency Conversion Equivalents
US Dollar (USD) to Cuban Peso (CUP):
1 USD: 315 CUP.
5 USD: 1,575 CUP.
10 USD: 3,150 CUP.
20 USD: 6,300 CUP.
50 USD: 15,750 CUP.
100 USD: 31,500 CUP.
Euro (EUR) to Cuban Peso (CUP):
1 EUR: 325 CUP.
5 EUR: 1,625 CUP.
10 EUR: 3,250 CUP.
20 EUR: 6,500 CUP.
50 EUR: 16,250 CUP.
100 EUR: 32,500 CUP.
These rates and equivalents are useful for understanding the relationship between these currencies and the Cuban peso in the current market.
No Immediate Change to Cuba's Official Exchange Rate
Last week, Cuban Prime Minister Manuel Marrero Cruz stated that a new official exchange rate cannot be established "overnight." The high-ranking official argued that a new official rate "would lead to a devaluation of the peso and an undesirable impact on inflation, prices, and low wages."
He indicated that there will eventually be a new realignment of the exchange market but warned that it is complex to implement under the current economic conditions. He added that any changes will be made "very gradually and with utmost caution."
The regime admitted the failure of the official exchange rate of 1x120 imposed in August 2022 as part of the economic restructuring but has yet to find a way to determine a rate that eliminates the informal currency market.
FAQs on Cuba's Informal Currency Market
Below are some frequently asked questions and answers about the recent changes in Cuba's informal currency market.
Why is the US dollar increasing in value in Cuba's informal market?
The increase is linked to recent economic measures announced by the Cuban government, including the return to cash payments in foreign currencies for certain services.
What is the current exchange rate for the US dollar in Cuba's informal market?
As of July 25, 2024, the US dollar is trading at an average of 315 CUP in Cuba's informal market.
Are the informal exchange rates officially recognized?
No, the informal exchange rates are not officially recognized or supported by any financial or governmental entity.
Will there be a new official exchange rate in Cuba soon?
According to Prime Minister Manuel Marrero Cruz, a new official exchange rate will not be established in the short term due to its potential negative impact on inflation and wages.