The informal currency market in Cuba experienced a significant rise in the euro's value this Tuesday, with an increase of five Cuban pesos within just 24 hours, reaching 385 Cuban pesos (CUP). This shift disrupts the euro's previous stability, which had been consistent at 380 CUP since Wednesday, April 23, based on reports from elTOQUE.
Informal Exchange Rate in Cuba: Tuesday, April 29, 2025 - 12:07 PM
USD to CUP: 368 CUP
EUR to CUP: 385 CUP
MLC to CUP: 265 CUP
For nearly a week, from April 23 to April 28, the euro held steady in the informal market, while the U.S. dollar and MLC exhibited more subtle changes. Today's developments signify a noteworthy shift in the trend of foreign currencies on the Island.
The U.S. dollar (USD) also saw a minor increase this Tuesday, climbing from 367 CUP to 368 CUP, while the freely convertible currency (MLC) remained unchanged at 265 CUP. This euro surge could be attributed to a mix of factors, including a high demand for foreign currency for private transactions, imports, and travel. Additionally, a shortage of euros in the informal market contrasts with the broader circulation of dollars. Meanwhile, internal inflation persists, and confidence in the Cuban peso as a means of saving and payment continues to erode.
The rising need for hard currency and the lack of availability through official channels have driven many Cubans to turn to the informal market, where rates fluctuate daily based on supply and demand.
Experts warn that without measures to improve currency availability and strengthen the national currency, the upward trend might persist, exacerbating the economic and social challenges faced by the population.
Understanding the Impact of Currency Fluctuations in Cuba
Why did the euro increase in the Cuban informal market?
The euro's increase is likely due to a high demand for foreign currency related to private transactions, imports, and travel, along with a shortage of euros in the informal market.
How stable has the euro been in Cuba's informal market prior to this increase?
Before the recent increase, the euro had maintained a stable rate of 380 CUP for several consecutive days since April 23.
What are the potential consequences of continued currency fluctuations in Cuba?
Continued currency fluctuations could worsen economic and social challenges in Cuba, especially if there are no measures to enhance foreign currency availability and strengthen the national currency.