The instability of Cuba's informal currency market has once again resulted in a day of declines for the country's main reference currencies. For the third consecutive day, the dollar has dropped in value within the informal Cuban market, with the euro following suit after maintaining a stable exchange rate the previous day.
Current Exchange Rates in Cuba
As of 11:28am on August 3, 2024, the exchange rates according to elTOQUE are as follows:
USD to CUP: 320 CUP
EUR to CUP: 335 CUP
MLC to CUP: 280 CUP
The only currency that remained unchanged was the freely convertible currency (MLC), which continues to be traded at 280 Cuban pesos (CUP) this Saturday. By noon today (Cuban time), the average selling price of the dollar was 320 CUP, which is five units less than the previous day.
The euro experienced a similar fluctuation, trading at 335 CUP in the informal Cuban market today, five Cuban pesos less than the day before. The decline in the value of both currencies follows an article published this Thursday in Granma, which threatened Cubans with up to five years in prison for using the informal market to buy and sell foreign currency.
"These actions are punishable by imprisonment for two to five years, or a fine of five hundred to one thousand quotas, or both," stated the official source in an announcement that leaves uncertainty as to whether it will impact the informal currency market in Cuba or if Cubans will ignore the threats.
On Thursday, the official newspaper of the Communist Party of Cuba (PCC) criticized those who exchange national currencies for foreign ones, arguing that it "affects the country's economic system." The article also noted that any transaction involving the sale, transfer, or acquisition of foreign currency "is illegal and constitutes a crime."
According to Granma, the population should understand that there is no "informal market," but rather a crime that "takes advantage of the facilities of social communication networks for the offer, purchase, sale, and exchange of national and foreign currencies."
Once again, the regime blamed the digital platform ElTOQUE, accusing it of implementing a strategy to "undermine the economy, create a negative impact on the country's monetary scale, and worsen the living conditions of Cubans." Finally, the Granma article reviewed the entire legal regulatory framework with which it threatens citizens, urging them to stop the buying and selling of currencies.
Impact of New Regulations on Cuba's Informal Currency Market
In light of recent developments and threats from the Cuban government, residents and analysts have several pressing questions about the future of the informal currency market in Cuba.
What are the current exchange rates for USD and EUR in Cuba's informal market?
As of August 3, 2024, the exchange rate for USD is 320 CUP and for EUR is 335 CUP according to elTOQUE.
What are the potential penalties for trading foreign currency in the informal market?
The Cuban government has stated that trading foreign currency in the informal market is punishable by two to five years in prison, a fine of five hundred to one thousand quotas, or both.
How has the government justified the crackdown on the informal currency market?
The government argues that trading national currencies for foreign ones in the informal market "affects the country's economic system" and is therefore illegal.
Who has the Cuban government blamed for the instability in the currency market?
The government has blamed the digital platform ElTOQUE for allegedly implementing a strategy to undermine the Cuban economy and worsen living conditions.