On Sunday morning, foreign currencies in Cuba showed stability following a week of significant price drops in the informal market. As of this morning, the U.S. dollar continues to hold at 300 pesos, a rate it reached on Saturday after briefly dipping to 298 CUP on Friday. Similarly, the euro remains at 300 CUP as of December 29, marking the second consecutive day where both the U.S. dollar and the euro share the same selling price in the informal exchange market.
The Freely Convertible Currency (MLC) remains stable at 250 CUP, a level it reached last Friday. As of 8:10 a.m. on December 29, 2024, in Cuba, the exchange rates are as follows:
- USD to CUP: 300 CUP according to elTOQUE.
- EUR to CUP: 300 CUP according to elTOQUE.
- MLC to CUP: 250 CUP according to elTOQUE.
The decline in foreign currency values began after the Cuban government's announcement to introduce a more flexible official exchange rate in 2025, one that would reflect market supply and demand dynamics. In an effort to provide an alternative explanation for the sudden drop in currency values in recent days, elToque suggested that the arrival of residents living abroad for year-end celebrations might be contributing to increased currency circulation and, consequently, a higher supply. "Nonetheless, economists warn that such appreciation is temporary and does not indicate a structural improvement in the economy," they added.
Currency Equivalents in Cuban Pesos
Here are the current currency conversions based on today's exchange rates:
U.S. Dollar (USD) to Cuban Peso (CUP):
1 USD = 300 CUP
5 USD = 1,500 CUP
10 USD = 3,000 CUP
20 USD = 6,000 CUP
50 USD = 15,000 CUP
100 USD = 30,000 CUP
Euros:
1 EUR = 300 CUP
5 EUR = 1,500 CUP
10 EUR = 3,000 CUP
20 EUR = 6,000 CUP
50 EUR = 15,000 CUP
100 EUR = 30,000 CUP
Anticipation Surrounding the "Floating Exchange Rate"
On December 18, the Cuban government revealed plans to implement a floating official exchange rate, aligned with market supply and demand, to compete with the thriving informal currency market. Though specifics and the implementation date remain undisclosed, this move aims to regulate the exchange landscape in a context where the informal currency market has predominantly dictated economic realities.
This policy is part of a broader strategy of partial dollarization, poised to impact key sectors such as wholesale and retail trade, tourism, and foreign commerce. Additionally, it will permit the use of cash dollars in areas like pharmacies, airports, and agricultural exporters.
Amid an economic backdrop characterized by inflation and the shortcomings of previous economic policies, the regime is once again attempting to regain control over a scenario where informal market rules largely shape the economic outlook for the population.
FAQs on Cuba's Currency Exchange Developments
Why did foreign currency values drop in Cuba?
The decline was influenced by the Cuban government's announcement of a future flexible official exchange rate, alongside an increase in currency circulation due to residents returning from abroad for year-end celebrations.
What is the current exchange rate for the U.S. dollar in Cuba?
As of December 29, 2024, the exchange rate for the U.S. dollar is 300 Cuban pesos in the informal market.
What is a floating exchange rate?
A floating exchange rate is a system where the value of a currency is determined by the market forces of supply and demand, rather than being fixed by the government.