This Tuesday, the euro saw its price rise for the third consecutive day in Cuba's informal market. As of July 30, the European currency reached 345 CUP, an increase of five pesos compared to the previous day. However, it remains far from its peak average value of 402.5 pesos on May 10.
As of 7:00 a.m. local time in Cuba, the USD and the Freely Convertible Currency (MLC) showed no changes from the previous day. The USD remains at 335 CUP, and the MLC, used by the Cuban government, is valued at 280 CUP.
Impact of Recent Economic Measures
After a nearly month-long streak of steady decline, mid-July marked a new turn in the values of the three key currencies in Cuba. Many Cubans on social media have linked this shift to the economic measures announced by the Cuban government this month, including the reintroduction of cash payments in foreign currencies for some services.
Prime Minister Manuel Marrero Cruz recently stated that the government cannot establish a new official exchange rate because it would "lead to a devaluation of the peso and an unwanted impact on inflation, prices, and low wages." He emphasized the complexity of this task under current economic conditions and assured that a new informal rate would be implemented "very gradually and with great caution" at some point.
Exchange Rates as of July 30, 2024 - 7:17 a.m. in Cuba:
- USD to CUP according to elTOQUE: 335 CUP
- EUR to CUP according to elTOQUE: 345 CUP
- MLC to CUP according to elTOQUE: 280 CUP
Currency Equivalents
Conversion rates for available USD and EUR bills to Cuban pesos (CUP), as of this Tuesday, July 30:
US Dollar (USD) to Cuban Peso (CUP):
- 1 USD: 335 CUP
- 5 USD: 1,675 CUP
- 10 USD: 3,350 CUP
- 20 USD: 6,700 CUP
- 50 USD: 16,750 CUP
- 100 USD: 33,500 CUP
Euros (EUR):
- 1 EUR: 345 CUP
- 5 EUR: 1,725 CUP
- 10 EUR: 3,450 CUP
- 20 EUR: 6,900 CUP
- 50 EUR: 17,250 CUP
- 100 EUR: 34,500 CUP
The regime has acknowledged the failure of the official 1x120 exchange rate imposed in August 2022 as part of economic restructuring. However, it has yet to find a solution to eliminate the informal currency market.
FAQs on Cuba's Currency Situation
To help our readers understand the current currency dynamics in Cuba, we have compiled some frequently asked questions and their answers.
Why is the euro's value rising in Cuba's informal market?
The euro's value is increasing due to recent economic measures announced by the Cuban government, including the return to cash payments in foreign currencies for some services. This has affected the demand and supply dynamics in the informal market.
What impact could a new official exchange rate have on Cuba's economy?
A new official exchange rate could lead to a devaluation of the peso, potentially exacerbating inflation, increasing prices, and further reducing already low wages. This is why the government is cautious about making changes.