Another surprising day unfolds in Cuba's informal currency market!
In recent hours, the Freely Convertible Currency (MLC), which showed signs of a significant increase in the Cuban informal market last week, has suddenly dropped by 25 euros and is now valued at 260 CUP.
Meanwhile, the dollar remains stable for the second consecutive day at 450 CUP, a level it reached this past Sunday.
The euro also shows no fluctuations, continuing to be valued at 490 CUP.
Current Exchange Rates Defy Official Narrative
Exchange rate on 12/01/2025 - 6:55 a.m. in Cuba: According to elTOQUE, the exchange rate for USD to CUP is 450 CUP. For EUR to CUP, it's 490 CUP. For MLC to CUP, it's 260 CUP.
The trends observed in the informal market stand in stark contrast to the Bank of Cuba's (BCC) official narrative. Earlier this month, the BCC announced plans for an "orderly and transparent official exchange market."
Three weeks have passed, yet there is no concrete implementation, no liquidity in foreign currencies, nor public mechanisms in place.
November ends with widespread increases and a soaring MLC, highlighting the severe liquidity crisis plaguing the nation.
The Cuban peso continues to lose ground against all currencies, and the informal market remains the only honest reflection of the true value of money in Cuba.
Currency Conversion Equivalents
Conversion of United States Dollar (USD) to Cuban Peso (CUP) based on December 1 exchange rates:
1 USD = 450 CUP.
5 USD = 2,250 CUP.
10 USD = 4,500 CUP.
20 USD = 9,000 CUP.
50 USD = 22,500 CUP.
100 USD = 45,000 CUP.
Conversion of Euros (EUR) to Cuban Peso (CUP):
1 EUR = 490 CUP.
5 EUR = 2,450 CUP.
10 EUR = 4,900 CUP.
20 EUR = 9,800 CUP.
50 EUR = 24,500 CUP.
100 EUR = 49,000 CUP.
200 EUR = 98,000 CUP.
500 EUR = 245,000 CUP.
Understanding Cuba's Informal Currency Market
Why is the MLC experiencing a sudden drop?
The MLC's sudden drop is attributed to fluctuations in the informal market, reacting to the lack of concrete steps by the Cuban government to stabilize the economy.
What is the significance of the informal market in Cuba?
Cuba's informal market provides a more accurate reflection of the currency's real value, often contrasting with the official narratives and rates given by the government.
How does the liquidity crisis affect the Cuban economy?
The liquidity crisis exacerbates economic instability, leading to increased volatility in currency values and impacting the purchasing power of Cuban citizens.