The U.S. dollar continues to climb in the informal Cuban market this Wednesday, marking the second day of price increases. This shift reverses a nearly month-long trend where the value of the American currency remained low, experiencing only brief periods of stability.
As of 7:00 a.m. local time on July 24, the dollar is trading at an average of 310 CUP, showing an increase of five units compared to the previous day. Meanwhile, the euro and the Moneda Libremente Convertible (MLC) have maintained their prices from yesterday, with the euro at 315 CUP and the MLC at 270 CUP.
Economic Measures and Public Reaction
So far, the response to the wave of economic measures announced by the Cuban government this month—including the return to cash management of foreign currencies in Cuba—had been a decline in the informal market values of dollars, euros, and MLC. On social media, opinions are varied, with some claiming the news is false, while others are indifferent because they do not possess these currencies, regardless of their price.
“What we need is higher salaries or increased pensions for retirees. So much work just to survive with so many hardships. How can a regular retiree afford to buy dollars? Cuban money is our money,” lamented one social media user on Tuesday, echoing a common complaint.
Others are pleased with the rise in the dollar’s value and foresee that recent measures might cause foreign currencies to skyrocket again. “It will reach record numbers. With the government announcing partial dollarization of the economy and not selling enough currency in its banks, demand will be very high. The price of foreign currencies will increase,” speculated another user following the initial rise on Tuesday.
Current Exchange Rates
Exchange rates as of 7:10 a.m. on July 24, 2024, in Cuba:
According to elTOQUE:
- USD to CUP: 310 CUP
- EUR to CUP: 315 CUP
- MLC to CUP: 270 CUP
Note that the informal exchange rates provided here are not officially recognized or endorsed by any financial or governmental entities.
Here are the equivalencies for each available bill of euros and U.S. dollars in Cuban pesos (CUP) according to the exchange rates this Wednesday, July 24:
U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 310 CUP
- 5 USD = 1,550 CUP
- 10 USD = 3,100 CUP
- 20 USD = 6,200 CUP
- 50 USD = 15,500 CUP
- 100 USD = 31,000 CUP
Euros (EUR):
- 1 EUR = 315 CUP
- 5 EUR = 1,575 CUP
- 10 EUR = 3,150 CUP
- 20 EUR = 6,300 CUP
- 50 EUR = 15,750 CUP
- 100 EUR = 31,500 CUP
These rates and equivalencies are useful for understanding the relationship between these currencies and the Cuban peso in the current market.
Government’s Stance on Official Exchange Rate
Cuban Prime Minister Manuel Marrero Cruz stated last week that the government cannot establish a new official exchange rate “overnight.” He argued that a new official exchange rate would result in a devaluation of the peso and an undesirable impact on inflation, prices, and low wages.
Marrero indicated that there will be a new recalibration of the exchange market at some point, but warned that it is complex to implement under the current economic conditions. He mentioned that this would be done “very gradually and with great care.”
The regime acknowledged the failure of the official exchange rate of 1×120 imposed in August 2022 as part of the economic reordering but has yet to find a way to determine a rate that would eliminate the informal foreign exchange market.
FAQs about the Rising Dollar Price in Cuba
Here are some frequently asked questions and answers about the recent rise in the dollar’s price in Cuba and its implications for the economy and everyday life.
Why is the dollar’s price increasing in Cuba?
The dollar’s price is increasing due to recent economic measures announced by the Cuban government, including the return to cash management of foreign currencies. This has created higher demand in the informal market.
What are the current exchange rates for USD, EUR, and MLC in Cuba?
As of July 24, 2024, the exchange rates are 310 CUP for USD, 315 CUP for EUR, and 270 CUP for MLC, according to elTOQUE.
Will the Cuban government establish a new official exchange rate soon?
According to Prime Minister Manuel Marrero Cruz, the government will not establish a new official exchange rate in the short term due to the complex economic conditions. Any changes will be implemented gradually and with caution.
