Currency Drop in Cuba: USD and MLC Rates Plummet

Tuesday, June 11, 2024 by Emily Vargas

This Tuesday, two out of the three main currencies in Cuba's informal market saw a significant drop in their average selling prices. The U.S. dollar fell by five pesos, dropping from 390 CUP to 385 CUP, according to values recorded at 7 a.m. on June 11. Although the U.S. dollar was just five pesos short of matching its record selling price of 395 CUP achieved in early May, it has now taken a step back, marking another chapter in the recent exchange rate instability.

Adding to the "roller coaster" of currency values in Cuba, the Freely Convertible Currency (MLC) also dropped today from 310 CUP to 306 CUP, a decrease of six pesos compared to the previous day. The euro, however, remained stable this Tuesday, holding at 400 CUP.

This new downturn in currency values comes after a calm Monday, during which none of the three main currencies saw any fluctuations. This followed five days of rapid increases, during which the euro, dollar, and MLC not only recovered but, in the case of the virtual currency, even surpassed their values before the May drop. Pure chaos... The recent volatility in Cuba's informal currency market has once again highlighted the country's economic instability and the growing uncertainty among its citizens, who are increasingly feeling the financial strain.

Current Exchange Rates in Cuba (June 11, 2024 - 7:10 a.m.)

According to elTOQUE, the exchange rates are as follows:

  • USD to CUP: 385 CUP
  • EUR to CUP: 400 CUP
  • MLC to CUP: 304 CUP

Alternative platform rates:

  • USD: Buy at 345 CUP, Sell at 387 CUP
  • EUR: Buy at 364 CUP, Sell at 398 CUP
  • MLC: Buy at 298 CUP, Sell at 304 CUP

The informal exchange rates provided here are not officially recognized or endorsed by any financial or governmental entity.

Currency Equivalents

U.S. Dollar (USD) to Cuban Peso (CUP), based on today's rates:

  • 1 USD: 385 CUP
  • 5 USD: 1,925 CUP
  • 10 USD: 3,850 CUP
  • 20 USD: 7,700 CUP
  • 50 USD: 19,250 CUP
  • 100 USD: 38,500 CUP

Euros (EUR) to Cuban Pesos (CUP):

  • 1 EUR: 400 CUP
  • 5 EUR: 2,000 CUP
  • 10 EUR: 4,000 CUP
  • 20 EUR: 8,000 CUP
  • 50 EUR: 20,000 CUP
  • 100 EUR: 40,000 CUP
  • 200 EUR: 80,000 CUP
  • 500 EUR: 200,000 CUP

And what is the Cuban government doing about this? Absolutely nothing. Neither the new Minister of Economy nor other island authorities have made any public statements regarding the significant drop in currency prices during the second half of May, nor about the recent rapid recovery of buying and selling values.

However, there has been noticeable activity on social media, where numerous small and medium-sized enterprises (SMEs) have launched an attack against elTOQUE. In this context, the independent media outlet announced last Friday that it has tightened controls to calculate the representative rate amid growing suspicions of attempts to inflate or deflate values with false listings. The outlet referred to a campaign by "government actors associated with State Security and propagandists of the Communist Party" who have been attempting to delegitimize the platform and its methodology for calculating the rate since April.

According to elTOQUE, private sector actors who claim to have the ability to coordinate efforts to boost the appreciation of the Cuban peso have also joined this campaign. The media outlet stated that it has "evidence of actions aimed at flooding virtual currency trading spaces with false offers to affect the algorithm" they use to calculate the rate. The independent media asserts that they have been "transparent" from the beginning and are aware of their method’s limitations, primarily not knowing which buying and selling listings get completed. Nevertheless, they defend that the calculated rate reflects the central movements of the informal market, although they admit that "it is a speculative market by nature."

"Neither the informal exchange market nor a service that makes it visible are the cause of the problems; they are, at most, a reflection of the imbalances and inflation affecting the Cuban economy. The solution is in the hands of the State and those who govern the country, who are the only ones with the institutional capacity to implement economic, fiscal, and monetary policies in the form of a macroeconomic stabilization program that includes structural reforms," they concluded.

Understanding Cuba's Currency Market Instability

To provide further clarity on the ongoing currency fluctuations in Cuba, here are some frequently asked questions and their answers:

Why has the U.S. dollar's value dropped in Cuba's informal market?

The drop in the U.S. dollar's value is part of the ongoing volatility in Cuba's informal currency market, influenced by speculative trading and economic instability.

What is the impact of these currency fluctuations on Cuban citizens?

The fluctuating currency values add to the financial uncertainty and strain on Cuban citizens, affecting their purchasing power and savings.

How does elTOQUE calculate its exchange rates?

elTOQUE calculates its exchange rates based on data from virtual currency trading spaces, although they acknowledge limitations in their method, such as not knowing which transactions are completed.

What actions has the Cuban government taken to address the currency issues?

As of now, the Cuban government has not taken any public actions to address the recent currency fluctuations or the broader economic instability.

© CubaHeadlines 2024

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