As December begins, subtle shifts emerge in Cuba's informal market. On the morning of Sunday, December 1st, the euro's average selling price dipped to 342 CUP, a slight decline of one peso compared to the previous day. This minor decrease underscores a downward trend that the European currency initiated earlier this week, having previously held steady at 345 CUP since November 4th.
Meanwhile, the US dollar remains valued at 328 pesos, a rate it has maintained since November 12th. The Freely Convertible Currency (MLC) continues to be priced at 265 pesos, having only once increased last month to 269 for a few hours. As December unfolds, the question arises: will the informal market's "paralysis" trend alter?
November saw limited fluctuations in the selling averages of the three key currencies in the informal market, a scenario anticipated by the Cuban Currency and Finance Observatory (OMFi). As the festive season and year-end approach, it remains to be seen whether any additional demand will emerge in the island's informal currency exchanges.
The latest report from OMFi highlights that the worsening economic crisis in Cuba has exerted a "paralyzing effect" on foreign currency transactions in the black market. According to Pavel Vidal, a Cuban economist residing in Colombia, the decline in tourism, reduced imports, and an overall slump in economic activities across sectors have led to a contraction in the supply and demand for foreign exchange.
Exchange rates as of 10:49 a.m. on December 1, 2024, in Cuba:
- USD to CUP, according to elTOQUE: 328 CUP.
- EUR to CUP, according to elTOQUE: 342 CUP.
- MLC to CUP, according to elTOQUE: 265 CUP.
Recent data from elTOQUE indicates slight shifts: the euro's selling price has decreased to 343, and for the dollar, both buying and selling rates have dropped to 326 CUP and 328 CUP, respectively. The MLC median remains unchanged.
Currency conversion rates for available euro and US dollar banknotes to Cuban pesos (CUP) on December 1st:
- 1 USD = 328 CUP
- 5 USD = 1,640 CUP
- 10 USD = 3,280 CUP
- 20 USD = 6,560 CUP
- 50 USD = 16,400 CUP
- 100 USD = 32,800 CUP
Euro (EUR):
- 1 EUR = 342 CUP
- 5 EUR = 1,710 CUP
- 10 EUR = 3,420 CUP
- 20 EUR = 6,840 CUP
- 50 EUR = 17,100 CUP
- 100 EUR = 34,200 CUP
FAQs on Cuba's Informal Currency Market
Why has the euro's value decreased in Cuba's black market?
The euro's decline is part of a broader trend of decreasing foreign currency values, influenced by Cuba's economic crisis and reduced demand.
What factors are affecting the informal currency market in Cuba?
Factors include a decline in tourism, reduced imports, and overall economic downturns, leading to a contraction in currency supply and demand.
Are there any changes expected in December for the currency market?
The proximity of Christmas and year-end may influence demand, but significant changes remain uncertain given the current economic climate.