Currencies lose value on Cuba’s informal market

This Friday, dollar, EuroAnd MLC experienced a moderate loss of value on Cuba’s informal market. At 7:00 a.m. (local time), the US dollar was at 330 CUP, five pesos less than the previous day. The euro also lost five units, reaching 345 CUP, after having been at 350 for several days.

The decline in Freely convertible currency (MLC) was more modest. The virtual currency used by the Cuban government fell by three pesos and was at 290 CUP, still well below the dollar and euro.

After 48 hours of no fluctuations in the average selling price of the currencies, the informal market reacted on Thursday and Friday with a moderate loss in the value of the three major currencies, triggered by the price cap imposed by the government on six basic products.

Current exchange rates from 07.12.2024 – 07:10 in Cuba

Exchange rate USD to CUP according to elTOQUE: 330 CUP.
Exchange rate EUR to CUP according to elTOQUE: 345 CUP.
Exchange rate MLC to CUP according to elTOQUE: 290 CUP.

The unofficial exchange rate shown here is not officially recognized or supported by any financial or government agency.

Cuban government caps prices for six basic products

The fall in the value of the dollar, the euro and the MLC this Friday followed the Cuban government’s announcement on Monday to cap prices on six basic products in high demand, according to a resolution published in the Official Gazette.

Resolution 225/2024 of the Ministry of Finance and Prices lists the capped products as follows: ground chicken (680 pesos per kg), edible oils other than olive oil (990 pesos per liter), powdered milk (1,675 pesos per kg), pasta (835 pesos per kg), sausage (1,045 pesos per kg) and washing powder (630 pesos per kg).

The regime portrayed the resolution as an attempt to minimize the impact of inflation for consumers. In addition, the government has eliminated customs duties on the import of these products by the private sector. They stated that the cap takes into account the cost of acquisition, marketing, profit of traders and sales tax.

However, MIPYMES and some economists have criticized the announcement. The measure has been criticized mainly by businessmen and economists who warn of the negative consequences of price caps and believe that the market should regulate itself through supply and demand.

Despite the criticism, the Ministry of Finance and Prices defends the so-called “temporary arrangement” on the grounds that it is a measure to curb rising prices and inflation, but does not mention the potential bottlenecks that could result from this policy.

Currency equivalents in Cuban Pesos (CUP)

US Dollar (USD) to Cuban Peso (CUP), according to exchange rate as of Thursday, July 11:
1 USD: 330 CUP
5 USD: 1,650 CUP
10 USD: 3,300 CUP
20 USD: 6,600 CUP
50 USD: 16,500 CUP
100 USD: 33,000 CUP

Euro (EUR)
5 EUR: 1,725 ​​CUP
10 EUR: 3,450 CUP
20 EUR: 6,900 CUP
50 EUR: 17,250 CUP
100 EUR: 34,500 CUP
200 EUR: 69,000 CUP
500 EUR: 172,500 CUP

March, Miguel Diaz-Canel promised a package of economic measures to “correct distortions and restart the economy.” He mentioned that prices would remain high, but assured that “abusive or speculative prices” would not be allowed.