After a period of intense fluctuations in Cuba's informal currency exchange market, Sunday morning brought stability, with the values of the U.S. dollar, euro, and Freely Convertible Currency (MLC) remaining unchanged. As of 8:00 a.m. local time, the U.S. dollar continues to be valued at 365 Cuban pesos (CUP), a rate it reached the previous day. Similarly, the euro and MLC maintain their averages at 375 CUP and 265 CUP, respectively.
Here's a snapshot of the exchange rates as of April 20, 2025, at 8:07 a.m. in Cuba:
Current Exchange Rates:
- U.S. Dollar (USD) to CUP according to elTOQUE: 365 CUP
- Euro (EUR) to CUP according to elTOQUE: 375 CUP
- MLC to CUP according to elTOQUE: 265 CUP
Conversion Examples for USD and EUR:
- 1 USD = 365 CUP
- 5 USD = 1,825 CUP
- 10 USD = 3,650 CUP
- 20 USD = 7,300 CUP
- 50 USD = 18,250 CUP
- 100 USD = 36,500 CUP
- 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
This week, elTOQUE, through its Observatory of Currencies and Finance in Cuba (OMFi), released a forecast for currency behavior in the informal market for the remainder of the month. According to their prediction, the dollar and euro might appreciate by 2.5% to 4.8%, while the MLC could decline to between 262 and 255 CUP per 1 MLC.
Projections suggest that the dollar could range from 364 to 372 CUP, and the euro from 370 to 377 CUP. Cubans closely monitor the informal exchange rates of the dollar, euro, and MLC because these rates significantly impact their real purchasing power in an economy plagued by scarcity and inflation.
The unpredictability of exchange rates in Cuba prompts many island residents to keep a vigilant eye on the informal market, seeking strategies to safeguard their purchasing power against the devaluation of the national currency.
Understanding Cuba's Informal Currency Market
Why is the informal exchange rate important in Cuba?
The informal exchange rate is crucial in Cuba as it directly affects the real purchasing power of citizens, who rely on it to navigate an economy characterized by scarcity and high inflation.
What factors influence the fluctuation of currency exchange rates in Cuba?
Exchange rate fluctuations in Cuba are often driven by economic instability, governmental policies, and external market pressures, all of which contribute to the volatility in the informal currency market.
How does the MLC compare to other currencies in Cuba?
The MLC, or Freely Convertible Currency, is used alongside the U.S. dollar and euro in Cuba's informal market, often reflecting different values and trends due to its specific use in certain transactions.