The exchange rate in Cuba's informal currency market remains stagnant, mirroring the government's unchanging stance amidst the severe economic crisis and relentless demand for foreign currencies. As of Saturday, November 9, 2024, the U.S. dollar is valued at 327 Cuban pesos (CUP), while the euro holds at 345 CUP. Additionally, the MLC (Freely Convertible Currency), utilized in state-run stores for basic goods, remains at 265 CUP.
Current Exchange Rates
On November 8, 2024, at 12:35 p.m. in Cuba, exchange rates were as follows:
- USD to CUP: 327 CUP according to elTOQUE.
- EUR to CUP: 345 CUP according to elTOQUE.
- MLC to CUP: 265 CUP according to elTOQUE.
In previous weeks, the dollar hovered around 320 CUP, with the euro fluctuating between 330 and 340 CUP. These fluctuations underscore the informal market's volatility, driven by high demand and limited currency supply.
Economic Crisis and Government Inaction
The current stability in exchange rates does not signify economic improvement but rather a market reaching a new high-price plateau. This situation stems from a deeply troubled economy, characterized by a severe foreign currency liquidity shortage, rampant inflation, and the continued devaluation of the Cuban peso—serious macroeconomic issues that the Cuban regime has failed to address.
Despite the "exchange market resizing" announced by Prime Minister Manuel Marrero Cruz in mid-July, the government remains unmoved by these challenges. As a result, Cubans struggle to access foreign currencies through official channels, making the informal market the primary source for such transactions, thereby intensifying pressure on exchange rates.
Consequences for the Cuban Population
This situation significantly impacts the cost of imported goods, driving prices up and further eroding the purchasing power of the Cuban people. The lack of concrete and effective measures by the authorities to stabilize the exchange market and protect the economy remains a critical concern. Meanwhile, citizens are forced to devise strategies to cope with daily life amidst growing uncertainty and limitations.
The circumstances demand profound economic reforms to offer a long-term solution and restore stability to the Cuban peso, providing relief to the population. The informal currency market has shown no significant changes since November 5, 2024, when the last substantial adjustment took place. At that time, the U.S. dollar rose to 327 CUP, and the euro increased to 345 CUP, with the MLC maintaining its position at 265 CUP.
The recent steadiness in exchange rates does not reflect an economic upturn but rather a temporary balance in a context of deep crisis and the Miguel Díaz-Canel administration's inaction. The persistent scarcity of foreign currencies and inflation continue to affect the cost of living, as imported goods become increasingly expensive and the Cuban peso progressively loses value.