On Sunday, the euro experienced a rise in its average selling rate for the second consecutive day. Throughout today, the European currency has been traded at an average of 357 CUP. This marks a slight increase of just 50 cents from the previous day, when it was sold at 356.5 CUP, according to independent monitoring by the media outlet elToque, which tracks the fluctuations of key currencies in Cuba.
Meanwhile, as of March 22, the US dollar remains at 350 CUP. The Freely Convertible Currency (MLC) is also unchanged, holding steady at 275 CUP, considerably lower than the other two currencies. The trend in both buying and selling values for these currencies shows an upward trajectory as of the close of this note.
Exchange Rates as of March 23, 2025 - 4:36 p.m. in Cuba:
- USD to CUP according to elToque: 350 CUP
- EUR to CUP according to elToque: 357 CUP
- MLC to CUP according to elToque: 275 CUP
Last week, the latest report from the Cuban Observatory of Currencies and Finances (OMFi) forecasted conditions favorable for an increase in the prices of both the dollar and the euro in the informal market toward the end of the month. According to their analysis, by March 31, rates are expected to be around 350-360 CUP per USD. For the euro, the projected rate by month's end ranges from 352-362 CUP per EUR, depending on central and maximum scenarios. In the case of the MLC, rates are anticipated to be between 270-260 CUP, in central and minimum scenarios.
However, Pavel Vidal, an economist and lead researcher at OMFi, clarified that these forecasts are contingent upon potential new economic policy announcements by the Cuban government; adjustments in regulatory frameworks for the private sector; shifts in market expectations; and changes that might occur in the Trump Administration's sanction policies.
Currency Equivalents in Cuban Pesos
As of March 23, the following are the equivalents of various denominations of US dollars and euros in Cuban pesos (CUP):
US Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 350 CUP
- 5 USD = 1,750 CUP
- 10 USD = 3,500 CUP
- 20 USD = 7,000 CUP
- 50 USD = 17,500 CUP
- 100 USD = 35,000 CUP
Euros (EUR):
- 1 EUR = 357 CUP
- 5 EUR = 1,785 CUP
- 10 EUR = 3,570 CUP
- 20 EUR = 7,140 CUP
- 50 EUR = 17,850 CUP
- 100 EUR = 35,700 CUP
- 200 EUR = 71,400 CUP
- 500 EUR = 178,500 CUP
Cubans closely monitor the informal exchange rates for the dollar, euro, and MLC as these rates significantly influence their actual purchasing power in an economy plagued by scarcity and inflation. The volatility of exchange rates in Cuba compels many island residents to keep a keen eye on the informal market, seeking strategies to safeguard their purchasing power against the devaluation of the national currency.
In a country where salaries and pensions paid in Cuban pesos (CUP) fall short of covering basic needs, access to foreign currencies has become essential for purchasing necessities in stores that only accept foreign currency or for making transactions in the black market, where products unavailable in state-run stores can be found.
Understanding Cuba's Informal Currency Market
Why do Cubans follow the informal exchange rates closely?
The informal exchange rates are closely monitored by Cubans because they significantly influence their purchasing power in an economy where inflation and scarcity are prevalent. These rates determine how far their money can go in acquiring essentials.
What factors could affect the forecasted exchange rates?
Forecasted exchange rates could be impacted by new economic policies from the Cuban government, changes in regulatory frameworks for the private sector, shifts in market expectations, and any modifications to the U.S. sanctions policy under the Trump Administration.