In a surprising turn of events, the euro has experienced a significant price increase in Cuba, as reported by the independent outlet elTOQUE in its daily update on informal currency exchange rates. As of 7:00 a.m. local time on Wednesday, the European currency unexpectedly rose by five pesos, jumping from 370 to 375 CUP.
Meanwhile, the US dollar remains steady at 362 CUP, a rate it reached on Tuesday. However, it's noteworthy that the median value of the American currency over the past 24 hours suggests that sales have been hovering around 365 for the second consecutive day, indicating a potential rise in the near future.
The Freely Convertible Currency (MLC) continues to be valued at 260 CUP. As of April 16, 2025, at 7:18 a.m. in Cuba, the exchange rates according to elTOQUE are as follows: USD to CUP at 362, EUR to CUP at 375, and MLC to CUP at 260.
Forecast for the Informal Market for the Rest of April
Through its Currency and Finance Observatory (OMFi), elTOQUE has developed specific forecasts for the behavior of currencies in the informal market for the remainder of April. Predictions indicate an appreciation of the dollar and the euro between 2.5% and 4.8%, while the MLC might continue to decline to levels between 262 - 255 CUP per 1 MLC.
In contrast, the dollar is expected to range between 364 and 372 CUP, and the euro between 370 and 377 CUP. These projections underscore the increasing pressure on the MLC, as its purchasing power erodes in the face of inflation and the market's preference for more stable currencies.
Currency Exchange Rates: US Dollars and Euros to Cuban Pesos (CUP)
For April 16, the exchange rates are as follows:
- 1 USD = 362 CUP
- 5 USD = 1,810 CUP
- 10 USD = 3,620 CUP
- 20 USD = 7,240 CUP
- 50 USD = 18,100 CUP
- 100 USD = 36,200 CUP
For Euros:
- 1 EUR = 375 CUP
- 5 EUR = 1,875 CUP
- 10 EUR = 3,750 CUP
- 20 EUR = 7,500 CUP
- 50 EUR = 18,750 CUP
- 100 EUR = 37,500 CUP
- 200 EUR = 75,000 CUP
- 500 EUR = 187,500 CUP
Cubans are closely monitoring the informal exchange rates of the dollar, euro, and MLC, as these determine their actual purchasing power in an economy characterized by scarcity and inflation.
The fluctuating exchange rates in Cuba lead many island residents to keep a watchful eye on the informal market's movements, seeking strategies to safeguard their purchasing power against the devaluation of the national currency.
Understanding Currency Fluctuations in Cuba
Why is the euro increasing in value in Cuba?
The euro's increase in value can be attributed to market demand dynamics and the ongoing preference for stable foreign currencies to counter inflation and economic instability.
What factors affect the informal exchange rates in Cuba?
Informal exchange rates in Cuba are influenced by factors such as supply and demand, economic policies, inflation, and global currency trends.
How does the informal market impact Cuban citizens?
The informal market significantly impacts Cuban citizens by affecting their purchasing power and ability to access essential goods and services amidst economic challenges.