The euro has unexpectedly surged in recent hours, climbing five pesos in Cuba's informal exchange market this Tuesday. According to independent monitoring by elToque, the European currency has reached 350 CUP. On the other hand, the U.S. dollar remains stable, valued at 345 CUP. Similarly, the Freely Convertible Currency (MLC) continues to average at 280 CUP.
Looking at the median buying and selling values of currencies in the informal market, there have been some changes. The selling price of the euro has risen to 350, while the buying median of the MLC has dipped three points to 275.
Current Exchange Rates in Cuba
As of 8:17 a.m. on March 11, 2025, the exchange rates in Cuba are as follows:
- U.S. Dollar (USD) to Cuban Peso (CUP) according to elToque: 345 CUP.
- Euro (EUR) to Cuban Peso (CUP) according to elToque: 350 CUP.
- Freely Convertible Currency (MLC) to Cuban Peso (CUP) according to elToque: 280 CUP.
Why Cubans Monitor the Informal Currency Market
Due to the volatility of exchange rates in Cuba, many island residents keep a close watch on the informal market to strategize how best to safeguard their purchasing power against the devaluation of the national currency. The informal exchange rates for the dollar, euro, and MLC effectively dictate their real purchasing power in an economy plagued by scarcity and inflation.
In a country where salaries and pensions in Cuban pesos (CUP) fall short of covering basic needs, access to foreign currencies has become essential for purchasing necessities in stores that sell exclusively in foreign currency or for transactions in the black market, where state-run shops often lack essential goods.
The ongoing devaluation of the Cuban peso against the dollar and euro has led to an inflationary spiral that hits particularly hard those relying on national currency incomes. Consequently, tracking exchange rates daily has become a common practice among Cubans. They aim to predict market movements to make crucial financial decisions, such as buying foreign currency to protect savings or planning remittances from abroad.
Conversion Rates for Euro and U.S. Dollar to Cuban Peso
Below are the conversion rates based on current exchange values as of March 11:
U.S. Dollar (USD) to Cuban Peso (CUP):
- 1 USD = 345 CUP
- 5 USD = 1,725 CUP
- 10 USD = 3,450 CUP
- 20 USD = 6,900 CUP
- 50 USD = 17,250 CUP
- 100 USD = 34,500 CUP
Euro (EUR) to Cuban Peso (CUP):
- 1 EUR = 350 CUP
- 5 EUR = 1,750 CUP
- 10 EUR = 3,500 CUP
- 20 EUR = 7,000 CUP
- 50 EUR = 17,500 CUP
- 100 EUR = 35,000 CUP
Understanding Cuba's Informal Currency Dynamics
Why is the euro important in Cuba's informal market?
The euro's importance stems from its role as a stable foreign currency alternative, offering Cubans a means to preserve value in an unstable economic environment.
How does the informal market impact daily life in Cuba?
The informal market significantly affects daily life by influencing purchasing power and access to goods, making currency trading essential for many Cubans.
What are the risks of relying on the informal exchange market?
Relying on the informal market involves risks such as fluctuating rates and potential legal issues, given the government's stance on currency control.