Currency Market Stalemate Amid Price Caps in Cuba

Tuesday, July 9, 2024 by Joseph Morales

Currency Market Stalemate Amid Price Caps in Cuba
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The announcement this Monday of a price cap implementation on six high-demand basic products in Cuba has not yet affected the informal currency exchange rates. As of this Tuesday morning, the average selling prices remain unchanged, according to the independent media outlet elToque. The U.S. dollar, euro, and Freely Convertible Currency (MLC) continue to hold their values from the previous day.

At 7:00 a.m. (local time) on July 9, the dollar is still valued at 340 pesos, the euro at 350 pesos, and the MLC at 295 CUP.

Today's Exchange Rates - July 9, 2024 - 7:10 a.m. in Cuba

Dollar to CUP exchange rate according to elToque: 340 CUP.
Euro to CUP exchange rate according to elToque: 350 CUP.
MLC to CUP exchange rate according to elToque: 295 CUP.

It's important to note that the informal exchange rate in Cuba provided here is not officially recognized or backed by any financial or governmental entity.

Cuban Government Caps Prices on Six Essential Products

The Cuban regime has set price ceilings on chicken parts, cooking oils, powdered milk, pasta, sausages, and detergent.

The Cuban government announced this Monday the implementation of price caps on six essential high-demand products through a resolution published in the Official Gazette of Cuba.

The Resolution 225/2024 from the Ministry of Finance and Prices establishes that the products now have maximum retail prices as follows: chicken parts (680 pesos per kg); cooking oils except olive oil (990 pesos per liter); powdered milk (1,675 pesos per kg); pasta (835 pesos per kg); sausages (1,045 pesos per kg); and powdered detergent (630 pesos per kg). The Cuban government presented the resolution as an effort to mitigate the impact of inflation on consumers.

To achieve this, the government has eliminated the payment of Customs Duties on the importation of these products and set maximum selling prices. These prices consider the costs of acquisition, marketing, merchant profits, and sales tax.

Additionally, a profit margin of up to 30% over costs and expenses is established, provided the prices defined in the resolution's annex are not exceeded.

Currency Conversion Rates for U.S. Dollars and Euros to Cuban Pesos

U.S. Dollar (USD) to Cuban Peso (CUP) according to exchange rates on Tuesday, July 9:

  • 1 USD: 340 CUP
  • 5 USD: 1,700 CUP
  • 10 USD: 3,400 CUP
  • 20 USD: 6,800 CUP
  • 50 USD: 17,000 CUP
  • 100 USD: 34,000 CUP

Euros (EUR):

  • 1 EUR: 350 CUP
  • 5 EUR: 1,750 CUP
  • 10 EUR: 3,500 CUP
  • 20 EUR: 7,000 CUP
  • 50 EUR: 17,500 CUP
  • 100 EUR: 35,000 CUP
  • 200 EUR: 70,000 CUP

In March, Miguel Díaz-Canel promised a package of economic measures to "correct distortions and revive the economy." He stated that prices would remain high but assured that "abusive or speculative prices" would not be allowed.

FAQs About Cuba's Price Caps and Currency Exchange Rates

In light of the recent developments in Cuba's economic landscape, here are some frequently asked questions and answers that may help clarify the situation.

What are the new price caps for essential products in Cuba?

The new price caps include 680 pesos per kg for chicken parts, 990 pesos per liter for cooking oils (excluding olive oil), 1,675 pesos per kg for powdered milk, 835 pesos per kg for pasta, 1,045 pesos per kg for sausages, and 630 pesos per kg for powdered detergent.

How are the informal currency exchange rates determined in Cuba?

The informal currency exchange rates in Cuba are determined by supply and demand dynamics in the black market and are not officially recognized or backed by any financial or governmental entity.

What measures has the Cuban government taken to control inflation?

The Cuban government has eliminated Customs Duties on the importation of essential products and set maximum retail prices to control inflation. Additionally, a profit margin of up to 30% is allowed over costs and expenses, provided the prices do not exceed the defined caps.

© CubaHeadlines 2024

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