The euro falls while the dollar maintains its value in the informal market in Cuba.
Today the exchange rates of the informal market in Cuba, according to El Toque, show a peculiar parity between the euro and the dollar, both quoted at 340.00 CUP.
For its part, the MLC (Freely Convertible Currency) remains at 240.00 CUP, without significant changes. This parity between the euro and the dollar contrasts with the international market, where the euro maintains a slightly higher value than the US dollar.
A market disconnected from international trends
While in the Cuban informal market the euro and the dollar share the same value, international rates reveal a different reality. According to current figures, 1 EUR is approximately equivalent to 1.0412 USDThis differential highlights how the internal dynamics of the Cuban market affect the perception and valuation of both currencies compared to their global behavior.
The equal value in Cuba could be explained by the similar demand for both currencies to meet local needs. While the dollar is established as the preferred currency for transactions and savings, the euro remains relevant due to its use in imports and as a means of payment in operations related to Europe.
Factors Affecting Rates in Cuba
- Internal supply and demandThe need for foreign currency for trade and savings drives both the dollar and the euro, balancing their exchange rates in the informal market.
- Economic PoliciesThe recent partial dollarization measures and the proposal of an official floating exchange rate generate uncertainty, increasing the preference for strong currencies.
- Global economic disconnectionTrade restrictions and limited interaction with the international financial market cause rates in Cuba to respond more to internal factors than to global trends.
Equivalences of current rates
Euro (EUR)
- 10 EUR3,400 CUP
- 20 EUR: 6,800 CUP
- 50 EUR: 17,000 CUP
- 100 EUR: 34,000 CUP
U.S. dollar (USD)
- 10 USD3,400 CUP
- 20 USD: 6,800 CUP
- 50 USD: 17,000 CUP
- 100 USD: 34,000 CUP
Freely convertible currency (FCL)
- 10 MLC: 2,400 CUP
- 20 MLC: 4,800 CUP
- 50 MLC: 12,000 CUP
- 100 MLC: 24,000 CUP
Impact on the daily economy
The parity between the euro and the dollar in the Cuban informal market reflects the complexities of an economy disconnected from international values. These rates directly influence the cost of living for Cubans, especially in a context where foreign currencies are key to accessing essential goods and services.
The behavior of these rates in the coming days will depend both on government policies and on the conditions of the informal market, keeping consumers' and business owners' attention on their fluctuations.
Every time I see a post about the dollar, euro, and those currencies that are not from Cuba, I think about the Cuban who has never touched them and sees how time and money are wasted on these posts instead of publishing other things.