Recent evaluations by independent outlet elTOQUE indicate that the US dollar and euro have experienced a slight decline in value within the past hours. On the morning of May 21, the American dollar was trading at an average of 368 CUP, marking a decrease of two units compared to the previous day. Similarly, the euro fell to 385 CUP, a drop of three pesos from its value on Tuesday. Meanwhile, the Freely Convertible Currency (MLC) remains unchanged at 260 CUP.
Exchange Rates in Cuba as of May 21, 2025 - 8:00 a.m.
The current rates, as reported by elTOQUE, are as follows:
- USD to CUP: 368
- EUR to CUP: 385
- MLC to CUP: 260
The recent data reflects a downward shift in expectations for the euro. While it was sold at an average of 392 CUP on Tuesday, it has now dropped to 389. The purchasing rate for the euro has also decreased to 380.
Future of Cuba's Informal Currency Market
The Observatory of Currencies and Finance of Cuba (OMFi) has highlighted a recent upward trend for both the dollar and euro, though it warns of a potential plateau due to increased willingness to sell, a trend observed since the beginning of the month. Cuban economist Pavel Vidal notes in a report that an excess supply of dollars might disrupt the steady rise seen since March. His forecasts for the end of the month suggest a range of 357-368 CUP for the dollar and 372-383 CUP for the euro, with the MLC hovering around 255-265 CUP.
Despite the current dip, the report underscores that the nation's growing dependency on dollars fuels a demand for the currency. This policy, however, poses significant risks, such as driving up costs for private businesses that import goods in foreign currencies to sell domestically in pesos, ultimately increasing prices to maintain profit margins.
Additionally, the consumption shift towards dollars exacerbates the gap between those with access to foreign currency and those without. With an average monthly salary of 5,839 pesos equating to merely 15.78 dollars at the informal exchange rate, and a minimum pension of 1,528 pesos translating to just 4.13 dollars, lower-income groups face restricted consumption and deepening inequalities.
Economic Challenges Amid Power Outages
Amidst ongoing power outages, experts advise those with access to foreign currency to retain it while also maintaining some national currency. Should fiscal adjustments stabilize, this could strengthen the Cuban peso. In such a scenario, having a mix of Cuban pesos in savings could be beneficial.
Conversion Rates for USD and EUR
Here are the conversion rates for USD and EUR to CUP as of May 21:
- 1 USD = 368 CUP
- 5 USD = 1,840 CUP
- 10 USD = 3,680 CUP
- 20 USD = 7,360 CUP
- 50 USD = 18,400 CUP
- 100 USD = 36,800 CUP
- 1 EUR = 385 CUP
- 5 EUR = 1,925 CUP
- 10 EUR = 3,850 CUP
- 20 EUR = 7,700 CUP
- 50 EUR = 19,250 CUP
- 100 EUR = 38,500 CUP
- 200 EUR = 77,000 CUP
- 500 EUR = 192,500 CUP
The Cuban population closely monitors the informal exchange rates of the dollar, euro, and MLC as these rates significantly impact their purchasing power in an economy plagued by scarcity and inflation. The fluctuation in exchange rates compels residents to stay informed and develop strategies to safeguard their purchasing power against the national currency's depreciation.
Understanding Cuba's Informal Exchange Market
Why have the dollar and euro values declined recently in Cuba's informal market?
The recent decline in the dollar and euro values in Cuba's informal market is attributed to an increase in the willingness to sell these currencies, creating a temporary oversupply that affects their value.
How do exchange rates impact the cost of living in Cuba?
Exchange rates significantly impact the cost of living in Cuba as they determine the real purchasing power of citizens. A stronger foreign currency increases import costs, which can lead to higher prices for goods and services.
What strategies are recommended for Cubans facing currency fluctuations?
Experts advise Cubans to hold onto foreign currencies while also keeping some Cuban pesos. This strategy can help mitigate risks associated with currency fluctuations and potential fiscal adjustments.