The currencies remain unchanged this Wednesday in their average selling value, according to the independent media elTOQUE, based on monitoring the price fluctuations of dollars, euros, and freely convertible currency (MLC) in buy and sell announcements published on social media.
At dawn on this October 16, the euro remains priced at 340 CUP and the dollar at 325, the latter value reached by the US currency on October 12.
In the case of the Freely Convertible Currency (MLC), it remains at 265 CUP, a price it has maintained since October 9, when it suddenly dropped by five pesos.
“Very cheap still. Given the level of the current crisis, by 2025 it should exceed 400 CUP, as the demand will be greater for services and basic needs,” commented a netizen about yesterday’s rate, which was similar to today’s.
The debate on whether the price of the dollar in the Cuban informal market should rise or fall reflects the interests and realities of different sectors in Cuban society.
These are the main reasons why some wish for the dollar price to rise, while others prefer it to remain stable or decrease:
Reasons why some want the price of the dollar to rise:
Remittances and purchasing power: Those who receive remittances from abroad, whether in dollars or euros, benefit from a higher exchange rate, as they can convert those dollars into more Cuban pesos. This allows them to increase their purchasing power in an economy where prices, especially in the informal market, are high.
Investments and private businesses: Many self-employed individuals and entrepreneurs rely on the informal currency market to acquire dollars and euros, which are necessary to import products or access international markets. A high exchange rate can attract more foreign currency to the country and encourage investments, although it also increases operating costs.
Speculation and quick profits: Some people in the informal currency market act as speculators, buying and selling dollars with the intention of making quick profits as the value of the currency fluctuates. If the dollar rises, those who have accumulated dollars can sell them at higher prices and achieve significant gains.
Reasons why others prefer the dollar to decrease or remain stable:
Inflation and rising cost of living: When the price of the dollar in the informal market increases, the prices of imported products and many goods in the Cuban market also rise. This affects the majority of Cubans who do not have access to dollars or remittances, making the cost of living increasingly high and difficult to sustain with salaries in Cuban pesos.
Impact on state-owned enterprises: The Cuban government and state-owned enterprises operating in Cuban pesos have difficulty accessing foreign currency at reasonable prices when the exchange rate in the informal market is high. This can hinder the import of essential products or the supply of stores in MLC, exacerbating the shortage of basic goods.
Increase in social inequality: A more expensive dollar in the informal market benefits those with access to foreign currencies, mainly families with connections abroad or those receiving remittances, while worsening the difficulties of most Cubans who depend solely on their income in Cuban pesos. This deepens economic inequality.
Pressure on salaries in pesos: In an economy where the price of the dollar keeps rising, salaries in Cuban pesos rapidly lose value. This reduces the purchasing power of the majority of the population that depends on state salaries, affecting their quality of life.
Exchange rate today 10/16/2024 – 7:19 a.m. in Cuba:
Exchange rate of the Dollar USD to CUP according to TOQUE: 325 CUP.
Exchange rate of the Euro EUR to CUP according to TOQUE: 340 CUP.
Exchange rate of MLC to CUP according to TOQUE: 265 CUP.
Equivalences of each available euro and US dollar banknote to Cuban pesos (CUP)
United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates of this October 16:
1 USD = 325 CUP.
5 USD = 1,625 CUP.
10 USD = 3,250 CUP.
20 USD = 6,500 CUP.
50 USD = 16,250 CUP.
100 USD = 32,500 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.
Do you have something to report? Write to CiberCuba:
editors@cibercuba.com +1 786 3965 689
