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Devaluation of Cuba's Convertible Currency in Informal Market

Monday, December 9, 2024 by Bella Nunez

The value of Cuba's Freely Convertible Currency (MLC) has taken a step back, losing its recent price gain within just a few hours. As of the morning of December 9th, this virtual currency used by the Cuban regime in designated stores fell back to 265 CUP, a decrease of five pesos from the previous day.

In contrast, the values of euros and dollars have remained stable since the last update. The U.S. dollar continues to hold steady in the Cuban informal market. As of December 6th, it has been consistently valued at 328 pesos for 28 consecutive days.

The euro also shows no change today, maintaining its rate at 340 CUP. Despite the approaching holiday season, there has been no significant activity in the informal buying and selling of currency on the island. Fewer tourists, reduced imports, and a downturn in economic activities across all sectors "have led to a contraction in the supply and demand for currency," as noted by Cuban economist Pavel Vidal in November.

So far, no changes are observed in December regarding the "paralyzing" trend identified by a report from the Observatory of Currencies and Finance of Cuba (OMFi). Current exchange rates as of 12:30 p.m. on December 9, 2024, in Cuba are as follows:

Exchange Rates:

  • USD to CUP: 328 CUP
  • EUR to CUP: 340 CUP
  • MLC to CUP: 265 CUP

Currency Conversion Equivalencies:

  • U.S. Dollar (USD) to Cuban Peso (CUP):
    • 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 = 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 Currency Market

Why has the MLC value dropped?

The drop in the MLC value is attributed to fluctuations in the informal market and potential economic strategies by the Cuban government.

How stable are the euro and dollar in Cuba's informal market?

Both the euro and the dollar have shown stability in recent days, maintaining their exchange rates without significant changes.

What factors are affecting currency exchanges in Cuba?

Economic decline, fewer tourists, and reduced imports are affecting currency exchanges, leading to a contraction in demand and supply.

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