For the third consecutive day, the monitoring by elToque of foreign currency values in Cuba's informal market reveals no change in the average selling prices. As of Friday, the US dollar remains at 345 CUP, while the euro is five pesos higher, holding steady at 350 since Tuesday. The Freely Convertible Currency (MLC), which dropped by five pesos last weekend, also shows no fluctuation, staying at 280 CUP.
However, there is a notable shift in the median values for buying and selling currencies: the median selling price of the dollar has risen to 348 CUP in the past hours. This movement could signal an impending increase in the dollar's average selling price soon.
Exchange Rate Update as of March 14, 2025 - 9:12 a.m. in Cuba:
- Dollar (USD) to CUP according to elToque: 345 CUP.
- Euro (EUR) to CUP according to elToque: 350 CUP.
- MLC to CUP according to elToque: 280 CUP.
In a country plagued by scarcity and inflation, Cubans closely monitor the informal exchange rates of the dollar, euro, and MLC, as these determine their actual purchasing power. The unpredictable nature of exchange rates in Cuba compels residents to keep a vigilant eye on the informal market, seeking strategies to safeguard their purchasing power against the national currency's decline.
With salaries and pensions in Cuban pesos (CUP) falling short of covering basic needs, access to foreign currency has become essential for purchasing necessities in stores that only accept foreign currencies or for conducting transactions in the black market, where items unavailable in state-run stores can be found.
The persistent devaluation of the Cuban peso against the dollar and euro has fueled an inflationary spiral, particularly affecting those whose income is in the national currency.
Currency Conversion for Available Euro and Dollar Bills to Cuban Pesos (CUP)
Based on the current exchange rates as of March 14:
US Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 345 CUP.
- 5 USD = 1,725 CUP.
- 10 USD = 3,450 CUP.
- 20 USD = 6,900 CUP.
- 50 USD = 17,250 CUP.
- 100 USD = 34,500 CUP.
- 1 EUR = 350 CUP.
- 5 EUR = 1,750 CUP.
- 10 EUR = 3,500 CUP.
- 20 EUR = 7,000 CUP.
- 50 EUR = 17,500 CUP.
- 100 EUR = 35,000 CUP.
Understanding the Impact of Currency Fluctuations in Cuba
Why is the informal exchange rate important to Cubans?
The informal exchange rate is crucial because it significantly impacts Cubans' real purchasing power in an economy affected by scarcity and inflation. It determines how much they can buy with their money in a country where access to goods often requires foreign currency.
How does the devaluation of the Cuban peso affect its citizens?
The devaluation of the Cuban peso leads to higher inflation, eroding the purchasing power of those earning in the national currency. This situation forces many to rely on foreign currency to meet basic needs, further straining their financial stability.
What strategies do Cubans use to cope with currency volatility?
To cope with currency volatility, Cubans often engage in the informal market to obtain foreign currency, seek remittances from abroad, or purchase goods in stores that accept foreign currencies. These strategies help them navigate the challenges posed by the devaluation of the CUP.