In an unexpected turn of events in Cuba's currency landscape, the past few hours have seen the Moneda Libremente Convertible (MLC) and the euro lose ground in the informal market, erasing the gains they achieved just a day prior. Meanwhile, the U.S. dollar remains steady, valued at 340 CUP.
As of 9:00 a.m. local time on this Monday, the MLC is trading at 240 CUP, marking a 15-peso drop from the previous day. The euro has also decreased, from 347.5 CUP to 342 CUP, bringing it closer to the dollar's current value.
These fluctuations underscore the volatility inherent in the island's informal market, a reflection of the increasing demand for foreign currencies among the population, especially following the recent opening of stores that accept cash payments in foreign currencies.
Exchange Rates as of January 13, 2025 - 9:07 a.m. in Cuba
According to elTOQUE:
- USD to CUP exchange rate: 340 CUP.
- EUR to CUP exchange rate: 342 CUP.
- MLC to CUP exchange rate: 240 CUP.
Since the beginning of the year, the informal market has exhibited a pattern of steadily increasing currency costs. At the start of January, the MLC was around 305 CUP, and the euro was near 310 CUP. This rapid increase over just a few days highlights a dynamic shaped by the imbalance between supply and demand within a financially constrained context.
Given this scenario, the anticipation of future changes in exchange rates continues to stir significant uncertainty among Cubans.
Currency Conversion Rates
Here are the current conversion rates for each available denomination of euros and U.S. dollars to Cuban pesos (CUP):
- U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD: 340 CUP
- 5 USD: 1,700 CUP
- 10 USD: 3,400 CUP
- 20 USD: 6,800 CUP
- 50 USD: 17,000 CUP
- 100 USD: 34,000 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
- 200 EUR: 68,400 CUP
Understanding Cuba's Informal Currency Market
Why is the informal market in Cuba so volatile?
Cuba's informal market is volatile due to the disparity between supply and demand for foreign currencies, coupled with the country's financial restrictions and economic challenges.
What has caused the recent decrease in the value of MLC and euro?
The recent decline in the value of the MLC and the euro can be attributed to shifts in market dynamics, reflecting changes in demand and possibly the introduction of new economic measures or policies.
How do current exchange rates impact the Cuban population?
Current exchange rates significantly affect the purchasing power of Cubans, influencing their ability to buy imported goods and impacting day-to-day financial decisions.