The dollar is better valued than the euro in Cuba. An explanatory note from the BPA has led the bank to explain to customers that “for days” it has been like this.
After the announcement of the new exchange rate on the Island, the Banco Popular de Ahorro (BPA) has published an informative note clarifying how currency deposits work over the counter.
In this way, they detailed how the exchange of the foreign currency that customers deposit in cash (except USD) works to put money on their MLC card. They used an example with euros.
“The client must multiply the amount of euros by the purchase exchange rate of the day and divide the result by the official rate of the Cuban peso for a natural person of the United States dollar (USD), which is 120. That will be the amount of MLC that are credited to your card at MLC.”
For a deposit of 100 euros in cash in Cuba, the client would credit less than 100 USD on his MLC card. The explanation of the Cuban bank left more doubts among users.
«Why do they put the purchase exchange rate of the euro to multiply and to divide the official rate of the dollar? That decreases the value of the Euro,” one person noted.
“Why, if the card is in MLC and the euro is an MLC, is the change not made directly? Why do they force us to change first to Cuban pesos, and then buy dollars?” someone else asked.
The dollar is better valued than the euro in Cuba. This is how BPA explains it
From the BPA they responded to their clients that “for days the euro has lost value against the USD throughout the world”.
“In no country in the world is the euro below the dollar, where it only has less value is here,” the Cuban users insisted.
Euro/dollar international exchange
1 US Dollar = 0.9775 Euros
1 Euro = 1.0231 Dollars
Source: The Economist.
“And if the United States government does not allow Cuba to use the dollar, why do you use it as an exchange base?” asked another person. “The USD is the world’s reference currency, that’s why,” they replied from the Cuban bank.
Onier Serrano Leyva, director of a BPA branch, explained that the explanatory note addressed cash deposits of foreign currencies in Cuban banks to credit MLC cards. This is not the case with US dollars.
“The deposits that were being made to the MLC cards continue as normal. If you have euros and want to deposit them on your card to buy in MLC stores, you can continue doing so, the same happens for the other currencies that are accepted in our bank, EURO, Pound Sterling, Canadian Dollar, Swiss Franc, Mexican Peso, Danish Krone , Norwegian Krone, Swedish Krona and Japanese Yen,” he wrote.
However, he recalled that “cash USD cannot be deposited on the cards, they can only be exchanged for CUP.”