The informal currency market in Cuba has largely remained stable since last Friday, with the exception of the Freely Convertible Currency (MLC), which is once again valued at 270 Cuban pesos. According to the independent media outlet, elTOQUE, the exchange rate as of December 10th is 328 CUP for the US dollar. Meanwhile, the euro is trading at 340 CUP and the MLC at 270 CUP.
Since November, there have been minimal fluctuations in Cuba's currency exchange market, a trend that the Cuban Monetary and Financial Observatory (OMFi) had previously anticipated. The latest report from OMFi highlights that the worsening economic crisis in the country has resulted in a "paralyzing effect" on the buying and selling of currency in the black market.
"The intensification of the economic crisis in 2024 has had a paralyzing impact on the informal currency market. A decline in tourism, imports, and overall economic activity across all sectors has led to a reduction in both the supply and demand for foreign currency," stated Pavel Vidal, a Cuban economist based in Colombia. He further predicted that the current stagnation in the informal market is likely to persist in the short term.
Exchange rates as of December 10, 2024 - 12:31 PM in Cuba:
- US Dollar (USD) to CUP according to elTOQUE: 328 CUP
- Euro (EUR) to CUP according to elTOQUE: 340 CUP
- MLC to CUP according to elTOQUE: 270 CUP
Understanding the Informal Currency Market in Cuba
Why is the MLC important in Cuba's economy?
The MLC is significant because it is used for purchasing imported goods in government stores, making it a crucial part of daily transactions for many Cubans.
What factors are affecting the informal currency market in Cuba?
The shrinking tourism industry, reduced imports, and overall decline in economic activity are contributing to the contraction of the informal currency market.
How reliable are the exchange rates reported by elTOQUE?
ElTOQUE is an independent media outlet that provides exchange rate insights based on its own assessments, making it a useful but not official source for currency information in Cuba.