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Dollar Strengthens in Cuba's Informal Market

Saturday, July 27, 2024 by Zoe Salinas

Dollar Strengthens in Cuba's Informal Market
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For the fifth consecutive day, the U.S. dollar continues its upward trend in Cuba's informal market, solidifying its recovery streak after nearly a month-long decline. As of 7:00 a.m. local time on July 27, the American currency is being traded at an average of 325 Cuban Pesos (CUP) on the streets, marking an increase of five units compared to the previous day.

Over the past five days, the U.S. dollar has risen by 25 CUP in the average informal market sales, increasing by five pesos daily. The euro and the Freely Convertible Currency (MLC) remain unchanged today, with the European currency trading at 330 CUP and the MLC at 270 pesos.

Many Cubans on social media are linking the recent shifts in the informal market to the economic measures announced by the Cuban government this month, including the return to cash payments in foreign currencies for some services. These new increases are part of the ongoing fluctuations in the island's informal foreign exchange market, which followed a sustained downward trend for all three currencies.

Exchange Rates as of 27/07/2024 - 7:30 a.m. in Cuba

USD to CUP exchange rate according to elTOQUE: 325 CUP.

EUR to CUP exchange rate according to elTOQUE: 330 CUP.

MLC to CUP exchange rate according to elTOQUE: 270 CUP.

These informal exchange rates in Cuba are not officially recognized or backed by any financial or governmental entity. Here are the equivalent values of each available euro and U.S. dollar banknote in Cuban pesos (CUP) as of this Saturday, July 27:

U.S. Dollar (USD) to Cuban Peso (CUP):

  • 1 USD = 325 CUP
  • 5 USD = 1,625 CUP
  • 10 USD = 3,250 CUP
  • 20 USD = 6,500 CUP
  • 50 USD = 16,250 CUP
  • 100 USD = 32,500 CUP

Euros (EUR):

  • 1 EUR = 330 CUP
  • 5 EUR = 1,650 CUP
  • 10 EUR = 3,300 CUP
  • 20 EUR = 6,600 CUP
  • 50 EUR = 16,500 CUP
  • 100 EUR = 33,000 CUP

This information can be helpful for those needing to make conversions between these currencies and the Cuban peso today.

No New Official Exchange Rate in Cuba Anytime Soon

Cuban Prime Minister Manuel Marrero Cruz stated last week that a new exchange rate cannot be set "overnight." He argued that implementing a new official exchange rate would lead to a devaluation of the peso and an undesirable impact on inflation, prices, and low wages. Marrero Cruz indicated that while there will eventually be a new adjustment to the exchange market, it is a complex process that will be implemented "very gradually and with great caution."

The regime acknowledged the failure of the official exchange rate of 1x120 imposed in August 2022 as part of the economic reorganization but has yet to find a way to establish a rate that would eliminate the informal foreign exchange market.

FAQs on the Rising Dollar in Cuba's Informal Market

Given the recent fluctuations in the dollar's value in Cuba’s informal market and the economic measures being implemented, here are some frequently asked questions that might help clarify the situation:

Why is the U.S. dollar increasing in value in Cuba's informal market?

The increase is attributed to economic measures announced by the Cuban government, including the reintroduction of cash payments in foreign currencies for some services.

What are the current exchange rates for USD, EUR, and MLC in Cuba?

As of July 27, 2024, the USD is trading at 325 CUP, the EUR at 330 CUP, and the MLC at 270 CUP in the informal market.

Will there be a new official exchange rate in Cuba soon?

According to Prime Minister Manuel Marrero Cruz, a new exchange rate will not be established quickly due to the complex economic conditions, and any changes will be implemented gradually and cautiously.

© CubaHeadlines 2024

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