The dollar has a better value than the euro in Cuba. An explanatory note on BPA has prompted the bank to explain to customers that it has been like this “for days”.
Following the announcement of the new exchange rate on the island, Banco Popular de Ahoro (BPA) has published an informative note explaining how the currency works at the deposit counter.
In this way, he explained in detail how the exchange of foreign currency deposited by customers in cash (except USD) works to put money on their MLC cards. He used an example with the euro.
“The customer must multiply the amount of the euro by the day’s purchase exchange rate 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 would be the MLC’s Amount that is credited to your card in MLC.”
For a 100 Euro cash deposit in Cuba, the customer will deposit less than 100 USD on his MLC card. Cuban Bank’s explanation left further doubts among users.
« Why do they put to multiply the purchase exchange rate of the euro and divide the official rate of the dollar? It lowers the value of the euro,” said one person.
“Why, if the card is in MLC and the Euro is MLC, isn’t the conversion done directly? Why do they force us to convert to Cuban pesos first, and then buy dollars?” someone else asked.
The dollar has a better value than the euro in Cuba. This is how BPA explains it
From the BPA he replied to his clients that “for days the euro has lost value against the USD around the world”.
Cuban users insisted, “There is no country in the world where the euro is below the dollar, where it has only little value.”
Euro/Dollar International Exchange
1 US Dollar = 0.9775 Euro
1 Euro = 1.0231 Dollar
Source: The Economist.
“And if the United States government doesn’t allow Cuba to use the dollar, why do you use it as a base of exchange?” Another person asked. “The USD is the world’s reference currency, therefore,” he replied from the Bank of Cuba.
The explanatory note addressed cash deposits of foreign currencies in Cuban banks for crediting MLC cards, BPA branch director Onier Serrano Leva explained. Not so in the case of the US dollar.
“What was being deposited in the MLC card continues as normal. If you have Euros and want to deposit them on your card to buy them in MLC stores, you can continue to do so, our banks are accepted in Euros, Pounds Sterling, Canadian Dollars, Swiss Francs, Mexican The same is true for other currencies. Peso, Danish Krone, Norwegian Krone, Swedish Krona and Japanese Yen,” he wrote.
However, he recalled that “cash USD cannot be deposited on the card, they can only be exchanged for CUP.”