U.S. dollars, euros, and MLC are experiencing another day of stagnant prices in Cuba's informal market. This trend may suggest a halt in the devaluation of the Cuban peso. However, multiple economists disagree, arguing that several other conditions must be met to genuinely claim a stop in the currency's devaluation.
As of 7:00 a.m. local time on August 16, the U.S. dollar remains valued at 320 pesos, while the euro is at 330 CUP. The dollar has been stable for 13 days, having reached 320 CUP on August 3 after a five-peso drop from the previous day. According to elToque, classified ads tracking the informal market have shown no movement since then. Similarly, the euro hit 330 CUP on August 5 and has stayed there since.
Only the Freely Convertible Currency (MLC) has seen any recent fluctuation, experiencing two consecutive days of decline on August 8 and 9. However, it has stabilized at 275 CUP since August 10.
Current Exchange Rates in Cuba
As of 7:55 a.m. on August 16, 2024, the exchange rates according to elToque are:
USD to CUP: 320 CUP
EUR to CUP: 330 CUP
MLC to CUP: 275 CUP
So, what's going on with foreign currencies in Cuba? So far, elToque has not commented on the recent stability of these currencies. The median values for buying and selling rates published this Friday also do not indicate any imminent changes. The average selling prices on August 16 are 330 pesos for euros, 320 for dollars, and 275 for MLC.
In terms of buying rates, the average has risen to 333 CUP for dollars and 275 for MLC.
Many Cubans are closely watching this unexpected pause in currency fluctuations. Earlier this year, the markets saw rapid and unpredictable changes. Some people welcome this stability, hoping it will also help curb inflation and product prices. Others are indifferent, as they have no access to these currencies.
Some attribute this pause to fewer flights to Nicaragua, which had previously driven up demand for hard currency. Others speculate that those holding dollars and euros are waiting to see what happens. Notably, this currency price freeze follows the Cuban regime's threats of imprisonment for those engaging in street currency trading, as reported in a July article in Granma. The penalties include up to five years in prison or fines ranging from 500 to 1,000 quotas.
Conversion Rates for U.S. Dollars and Euros
Based on the exchange rates of August 16, here are the equivalent values of U.S. dollars and euros in Cuban pesos:
U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 320 CUP
- 5 USD = 1,600 CUP
- 10 USD = 3,200 CUP
- 20 USD = 6,400 CUP
- 50 USD = 16,000 CUP
- 100 USD = 32,000 CUP
Euro (EUR) to Cuban Peso (CUP):
- 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
- 200 EUR = 66,000 CUP
- 500 EUR = 165,000 CUP
Understanding Cuba's Currency Stability
Given the recent trends in Cuba's currency market, here are some frequently asked questions to help understand the situation better:
Why are the U.S. dollar and euro stable in Cuba?
The stability could be due to a variety of factors, including fewer flights to Nicaragua and people holding onto their foreign currencies while waiting to see what happens next.
What impact does currency stability have on the Cuban economy?
Some Cubans hope that stable currency rates will also stabilize inflation and product prices, although the long-term effects are still uncertain.
How has the Cuban government responded to street currency trading?
The government has threatened imprisonment and fines for those caught trading currencies on the street, as stated in a July article in Granma.