This past Saturday saw a surprising jump in the value of the dollar within Cuba's informal currency exchange market. The spike occurred in the wake of ETECSA, the state-run telecommunications company, announcing new limitations on mobile recharges in Cuban pesos and increasing dollar-based services. Previously stable at 370 CUP, the American currency climbed to 372 CUP on May 31, according to the average reported by elTOQUE.
Informal Exchange Rates in Cuba
Saturday, May 31, 2025 - 10:00 AM
Dollar (USD) to Cuban pesos (CUP): 372 CUP
Euro (EUR) to Cuban pesos (CUP): 395 CUP
Freely Convertible Currency (MLC) to Cuban pesos (CUP): 264 CUP
Although the rise is just three pesos in the median rate, it signifies a steady increase in transactions that had already been hinted at the previous day when the median reached 375 CUP. Meanwhile, the euro remains steady at 395 CUP, unchanged from previous days, even though Friday's median transactions momentarily hit 400 CUP. As for the Freely Convertible Currency, it holds at 265 CUP following a surprising five-peso increase the day before.
The rise in foreign currency prices comes just hours after ETECSA announced a cap of 360 CUP per month for mobile line recharges in national currency, a decision impacting millions of users directly. Furthermore, several mobile data plans and combo packages are now exclusively available for purchase in dollars, whether through international cards or the MiTransfer digital wallet.
This shift has sparked concern among citizens who are witnessing the restriction of the Cuban peso in essential services, alongside an increase in dollarization across key sectors. The need to acquire foreign currency to stay connected, combined with dissatisfaction over the measure—which has sparked calls for a boycott of the state-run company on social media—has driven up the demand for dollars in the informal market.
The recent changes in exchange rates underscore the ongoing sensitivity of foreign currency values to political and economic decisions, as seen previously with announcements related to banking reforms or fiscal measures. With these new adjustments, ETECSA once again disrupts an already volatile market subject to intense speculation.
Impact of ETECSA's Dollar-Based Services on Cuba's Informal Market
Why did the value of the dollar increase in Cuba's informal market?
The value of the dollar increased due to ETECSA's announcement of new restrictions on mobile recharges in Cuban pesos and enhanced dollar-based services, sparking higher demand for dollars.
How have ETECSA's decisions affected Cuban citizens?
ETCSA's decisions have limited the use of the Cuban peso for essential services, leading to increased dollarization, and have caused concern and dissatisfaction among citizens.