For the second consecutive day, the U.S. dollar is falling in the Cuban informal market, while the euro and MLC (Freely Convertible Currency) remain unchanged. As of 7:00 a.m. local time this Friday, the average selling price of the dollar stands at 325 CUP, five units less than the previous day.
The euro and the dollar hold steady at their Thursday values: the European currency at 340 CUP, and the MLC at 280 CUP.
Government Threats and Market Response
The slight decline in the dollar's value follows an article published on August 1st in the official newspaper Granma, which threatened Cuban citizens with up to five years in prison for participating in the informal currency market.
"These actions are punishable by imprisonment for two to five years, or a fine of five hundred to one thousand quotas, or both," stated the official source in an announcement. It remains unclear whether this will impact the informal currency market in Cuba or if Cubans will ignore the threats.
Exchange rates as of 7:13 a.m. on August 2, 2024, in Cuba are as follows:
- USD to CUP: 325 CUP
- EUR to CUP: 340 CUP
- MLC to CUP: 280 CUP
This Thursday, Granma criticized those who exchange national currencies for foreign ones, arguing that it "affects the country's economic system." The paper also stated that any transaction involving the sale, transfer, or acquisition of foreign currency "is illegal and constitutes a crime."
According to Granma, the public should know that there is no "informal market," but rather a crime that "takes advantage of social media networks to offer, buy, sell, and exchange national and foreign currencies." Once again, the regime blamed the digital platform El Toque, accusing it of having a strategy to "affect the economy, generate a negative impact on the monetary scale of the country, and worsen the living conditions of Cubans."
Finally, the Granma article reviewed the entire regulatory legal framework threatening citizens, urging them to stop currency trading. "They are always full of threats but never solve the problems," wrote one outraged internet user among hundreds of reactions to the announcement.
Currency Equivalents
Equivalents of each available bill of euros and U.S. dollars to Cuban pesos (CUP) as of August 2:
- 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
- 1 EUR: 340 CUP
- 5 EUR: 1,700 CUP
- 10 EUR: 3,400 CUP
- 20 EUR: 6,800 CUP
- 50 EUR: 17,000 CUP
- 100 EUR: 34,000 CUP
Understanding Cuba's Informal Currency Market
Here are some frequently asked questions about the current situation in Cuba's informal currency market and the government's recent threats.
Why is the U.S. dollar declining in Cuba's informal market?
The dollar's decline follows an article in Granma threatening citizens with prison for participating in the informal currency market, causing uncertainty and reducing demand.
What are the current exchange rates for the USD, EUR, and MLC in Cuba?
As of August 2, 2024, the exchange rates are 325 CUP for the USD, 340 CUP for the EUR, and 280 CUP for the MLC.
How is the Cuban government responding to informal currency trading?
The government is threatening citizens with prison sentences and fines for participating in the informal currency market, claiming it affects the country's economic system.