The value of the dollar and other currencies remains unchanged in Cuba's informal market, indicating no immediate response to the Cuban government's recent announcement. This Wednesday, authorities revealed plans to open new dollar-based stores across the nation, a step towards the partial dollarization of the economy. The regime has confirmed that accounts in Freely Convertible Currency (MLC) will stay in the island's banks, supporting the dollar's role in the economic landscape.
As of Thursday morning, the three primary currencies involved in informal trade on the island have shown eight consecutive days of stability, according to independent outlet elToque, which tracks buying and selling ads on social media platforms. The U.S. dollar remains at 340 CUP, a rate it reached on January 11, marking 19 days without variation. The euro also shows no movement after a sudden drop of five units last week, maintaining parity with the dollar at 340 CUP.
For the Freely Convertible Currency (MLC), the rate is steady at 240 CUP, holding this value for 17 days. The exchange rates reported by elToque on January 30, 2025, at 7:30 a.m. in Cuba are as follows:
Exchange Rates:
USD to CUP: 340 CUP
EUR to CUP: 340 CUP
MLC to CUP: 240 CUP
Overall, these key currencies have exhibited a trend toward stability during the second half of January.
Currency Equivalents:
United States Dollar (USD) to Cuban Peso (CUP) at the current exchange rates on January 30:
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 = 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 Situation
Why haven't the currency exchange rates changed after the store announcement?
The stability in exchange rates suggests that the market does not foresee immediate impacts from the store openings, or it may be waiting for more concrete developments.
What is the significance of the partial dollarization of Cuba's economy?
Partial dollarization can help stabilize the economy by introducing a more stable foreign currency, but it also reflects deeper economic challenges and dependency on foreign currency.