Opening value of the euro in Cuba this March 1 from EUR to CUP

Opening value of the euro in Cuba this March 1 from EUR to CUP

The euro in Cuba hit a record high this year in the country’s informal market. (Infobase)

He euro paid at the start of operations 25.62 Cuban pesos at the official exchange ratewhich meant a change of 1.17% from the value of the previous session, when it ended at 25.32 Cuban pesos at the official exchange rate.

Compared to last week’s profitability, the euro recorded an increase of 0.77%; however, over the past year, it still maintains a decline 0.51%.

Regarding the past days, it reverses the result of the day before, when it obtained a drop of 0.15%, demonstrating that it is not able to establish a stable trend on recent dates. With reference to the volatility of the last week, it is significantly lower than that accumulated last year, so we can say that it is going through a period of greater stability in recent days.

The Cuban peso is the currency legal tender in Cuba and used by the majority of the population, it is divided into 100 units called centavos.

Since January 1, 2021, the cuban convertible peso as legal tender, since it was the most accepted in the payment of obligations and although it still has legal value, it is not accepted in the payment of products and services.

In 2002, the exchange rate was 21 Cuban pesos for each convertible peso, but it was then devalued until it reached 26 Cuban pesos for one convertible peso. As for the dollar, it is equivalent to 25 Cuban pesos and one convertible Cuban peso.

It was not until April 2005 that the government accepted the devaluation of the Cuban peso against the convertible by changing it to 25 Cuban pesos per convertible peso and the latter remained at parity of 1: 1 against the dollar plus a tax of 10 percent, with this, we have that for each dollar changed, 12% of its value.

It was like that until January 1, 2021, the date on which “Day Zero” was agreed of monetary unification, if for many the disappearance of the convertible peso was perceived as a devaluation, for others it was only a measure to catch up with the 24 Cuban pesos for one dollar.

Consequently, the demand for foreign currency also fostered a black exchange market in which one dollar was sold for 100 convertible Cuban pesos.

Currently there are coins of 1, 2, 5 and 20 cents and 1, 3 and 5 pesos; while in the banknotes there are 1, 3, 5, 10, 20, 50, 100, 200, 500 and 1000 pesos.

On the economic level, the Minister of Economy himself, Alejandro Gil Fernández, acknowledged that in 2022 the projected levels were not reached due to the impossibility of achieving expected export revenues.

Likewise, there has been a decrease in tourism; as well as an increase in inflation of up to 40%, which resulted in a rise in the prices of the basket of goods and services. As the Minister pointed out, inflation is an effect of the lack of availability of foreign currency.

On the other hand, the latest forecasts made by the Economic Commission for Latin America and the Caribbean (Cepal) at the end of last year, by 2023, a decline or exhaustion of the rebound effect is expected in recovery.

For this year, only 1.3% growth is expected for the region, because result of restrictive monetary policiesgreater limitations on budget spending, lower levels of consumption and investment, weak ability to contain inflation and more.

For him special case of CubaECLAC expects growth of 1.8% while local authorities expect it to reach 3%.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.For tips or news submission: