Have currencies in the informal market reacted after the massive blackout and Hurricane Oscar? The answer is no.
The price of the three reference currencies in Cuba has shown no changes in recent days, according to values published today by the independent medium elTOQUE based on the monitoring of the fluctuations of dollars, euros, and Freely Convertible Currency (MLC) in buy and sell announcements posted on social media.
At 7:00 a.m. on this October 17, the dollar is still valued at 325 and the euro at 340 CUP.
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.
Although such stagnation is perfectly understandable given the limited connectivity of the population in recent days, in reality, the currencies had already entered a new period of stability beforehand.
After showing signs of some movements at the beginning of October, the foreign currencies entered a period of calm from October 12, when the dollar rose to 325 CUP.
In the last 10 days, the exchange rates have not risen or fallen in price, according to the monitoring conducted by elTOQUE of the values.
Exchange rate today 22/10/2024 – 10:15 a.m. in Cuba:
Exchange rate of the USD to CUP according to elTOQUE: 325 CUP.
Exchange rate of the Euro EUR to CUP according to TOQUE: 340 CUP.
Exchange rate of the MLC to CUP according to TOQUE: 265 CUP.
The median of values published today by elTOQUE also does not indicate that the currencies are going to experience changes in the last few hours.
Meanwhile, the debate over whether the price of foreign currencies in the Cuban informal market should rise or fall is always ongoing on social media and reflects the interests and realities of different sectors in Cuban society.
Reasons why some want the price of currencies 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 depend 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 make significant profits.
Reasons why others prefer that currencies drop or remain stable:
Inflation and rising cost of living: When the price of the dollar in the informal market rises, the prices of imported products and many goods in the Cuban market also increase. 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 the state-owned companies operating in Cuban pesos have difficulties 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 currency, primarily families with connections abroad or those receiving remittances, while exacerbating the struggles of the majority of Cubans who rely 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 continues to rise, salaries in Cuban pesos are losing value rapidly. This reduces the purchasing power of most of the population that depends on state salaries, affecting their quality of life.
Equivalencies of each available euro and US dollar bill to Cuban pesos (CUP)
United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates of this October 22:
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.
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