Tuesday morning brought an unexpected twist for Cuba's informal market as both the dollar and the euro saw a rise in their selling prices. It's been quite some time since both currencies appreciated simultaneously in a single day.
At 7:00 a.m. local time, the U.S. dollar was trading at 348 CUP, marking a one-peso increase from the previous day. Meanwhile, the euro, which had been stable at 350 CUP for several days, climbed two pesos to reach 352 CUP. In contrast, the Moneda Libremente Convertible (MLC) held steady at 275 CUP, remaining significantly lower than both the dollar and the euro.
The median exchange rates for buying and selling these currencies also showed some movement this Tuesday. Notably, the dollar's selling price increased to 350 CUP, suggesting a potential continued upward trend in the informal market.
Today's Exchange Rates in Cuba - March 18, 2025, 7:04 a.m.:
- USD to CUP according to elTOQUE: 348 CUP.
- EUR to CUP according to elTOQUE: 352 CUP.
- MLC to CUP according to elTOQUE: 275 CUP.
Currency Equivalents:
U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 348 CUP
- 5 USD = 1,740 CUP
- 10 USD = 3,480 CUP
- 20 USD = 6,960 CUP
- 50 USD = 17,400 CUP
- 100 USD = 34,800 CUP
Euros (EUR):
- 1 EUR = 352 CUP
- 5 EUR = 1,760 CUP
- 10 EUR = 3,520 CUP
- 20 EUR = 7,040 CUP
- 50 EUR = 17,600 CUP
- 100 EUR = 35,200 CUP
- 200 EUR = 70,400 CUP
- 500 EUR = 176,000 CUP
Economic Challenges and Currency Volatility
Cubans closely monitor the informal exchange rates of the dollar, euro, and MLC, as these rates directly impact their purchasing power in an economy plagued by shortages and inflation. The unpredictable nature of currency rates in Cuba prompts many residents to keep a vigilant eye on the informal market, seeking ways to safeguard their purchasing power against the devaluation of the national currency.
In a country where salaries and pensions in Cuban pesos (CUP) fall short of meeting basic needs, access to foreign currency has become essential. It enables citizens to purchase necessities in stores that exclusively accept foreign currencies or to carry out transactions in the black market, where goods unavailable in state-run stores can be found.
The relentless devaluation of the Cuban peso against the dollar and euro has triggered an inflationary spiral, disproportionately affecting those reliant on national currency incomes.
Understanding Cuba's Currency Market
Why are Cubans focused on the informal exchange rates?
Cubans track informal exchange rates because they determine real purchasing power in an economy characterized by shortages and inflation.
What impact does the devaluation of the Cuban peso have?
The devaluation leads to inflation, especially affecting those dependent on incomes in Cuban pesos, as it reduces their purchasing power.
How do Cubans use foreign currency in their daily lives?
Foreign currency is utilized for purchasing essential goods in stores that accept only foreign money and for transactions in the black market.