Currency Decline Halts in Cuba

Tuesday, June 4, 2024 by Isabella Sanchez

After experiencing 19 consecutive days of declines, the price of the U.S. dollar has remained stable in the informal Cuban market as of Tuesday. As of 7 a.m. local time on June 4, the dollar is still valued at 280 pesos, the same rate as the previous day.

This stabilization also applies to the euro and the Freely Convertible Currency (MLC), which have both held steady for the second day in a row at 295 pesos for the euro and 260 CUP for the MLC. After an unprecedented drop, marked by a rapid decline in foreign currencies over the past two weeks, the informal market is showing signs of a halt.

In just 19 days, the dollar lost 115 pesos, with some days seeing drops of 10 to 20 pesos. The euro experienced a similar decline, falling from 402.50 to 295 CUP in just two weeks. This sudden stabilization raises questions about whether this pause signifies a turning point and a return to rising currency values or merely a brief respite amid the ongoing decline.

Interestingly, alternative exchange rate platforms have even reported a slight increase in the dollar's value today. According to these platforms, the dollar has risen from 276 to 279 in buying and from 286 to 288 pesos in selling.

Exchange Rates as of June 4, 2024 - 7:00 a.m. in Cuba

Exchange rates according to elTOQUE:

  • USD to CUP: 280 CUP
  • EUR to CUP: 295 CUP
  • MLC to CUP: 260 CUP

Alternative platform exchange rates:

  • USD: Buy 279 CUP, Sell 288 CUP
  • EUR: Buy 288 CUP, Sell 298 CUP
  • MLC: Buy 253 CUP, Sell 259 CUP

It is important to note that the informal exchange rate in Cuba is not officially recognized or supported by any financial or governmental entity. While many Cubans have viewed the decline in informal currency prices positively, there is widespread concern that the prices of consumer goods have not decreased at the same rate. However, there have been some reports of price drops in certain small and medium-sized enterprises (Mipymes).

Those with access to foreign currencies in Cuba are advised to hold onto their currency, as it is believed that the value of the euro, dollar, and MLC will eventually rise again. Could this moment have arrived?

Throughout the past two weeks, the Cuban government has remained silent on this issue.

Currency Conversion Rates

Here are the equivalencies for each available bill of euros and U.S. dollars to Cuban pesos (CUP) as of Tuesday, June 4:

U.S. Dollar (USD) to Cuban Peso (CUP):

  • 1 USD = 280 CUP
  • 5 USD = 1,400 CUP
  • 10 USD = 2,800 CUP
  • 20 USD = 5,600 CUP
  • 50 USD = 14,000 CUP
  • 100 USD = 28,000 CUP

Euros (EUR) to Cuban Pesos (CUP):

  • 1 EUR = 295 CUP
  • 5 EUR = 1,475 CUP
  • 10 EUR = 2,950 CUP
  • 20 EUR = 5,900 CUP
  • 50 EUR = 14,750 CUP
  • 100 EUR = 29,500 CUP

FAQs on Cuba's Currency Situation

With the recent stabilization of currency values in Cuba, many questions arise about the future of the U.S. dollar, euro, and MLC. Here are some frequently asked questions and their answers.

Why has the currency decline stopped in Cuba?

The halt in the decline is likely due to market adjustments and possibly the perception that the currencies had reached a floor value. This stabilization might also be influenced by traders holding onto their currencies in anticipation of future value increases.

Will the value of the U.S. dollar, euro, and MLC increase again?

It is uncertain, but many believe that these currencies will eventually regain value. The informal market is volatile, and numerous factors can influence these changes.

How does the informal exchange rate affect everyday Cubans?

The informal exchange rate can significantly impact purchasing power and the cost of living, as many goods and services are priced based on these rates. Fluctuations can lead to economic instability for those relying on remittances or currency exchanges.

© CubaHeadlines 2024

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