On Saturday morning, Cuba's informal currency market witnessed a slight uptick in the value of the dollar, as it gains ground against the Cuban peso once more. Meanwhile, the euro and the Freely Convertible Currency (MLC) remain stable, marking a period of relative calm for these two currencies.
According to the daily updates from the independent outlet elTOQUE, the median buying and selling rate for the U.S. dollar in the black market stands at 380 Cuban pesos (CUP), reflecting an increase of two pesos compared to Friday's rate of 378 CUP. The euro holds steady at 410 CUP, consistent with previous days, while the MLC remains at 260 CUP, one of its lowest levels in 2025.
Informal Exchange Rates in Cuba
Saturday, June 21, 2025 - 07:00 AM
Exchange rate of the U.S. dollar (USD) to Cuban pesos (CUP): 380 CUP
Exchange rate of the euro (EUR) to Cuban pesos (CUP): 410 CUP
Exchange rate of the MLC to Cuban pesos (CUP): 260 CUP
The dollar's fluctuation could be linked to a surge in demand, a trend predicted by the Cuban Currency and Finance Observatory (OMFi), which warned of a potential "excess demand" during the latter half of June. This behavior contrasts with the supply dominance observed the previous month.
In its latest forecast, the OMFi projected a central value of 385 CUP for the dollar by June 30, with possible margins reaching up to 408 CUP. For the euro, a median value of 406 CUP is anticipated, and for the MLC, 274 CUP. These figures suggest the possibility of further increases in the coming days.
Current Exchange Rate Equivalents
Dollar (USD):
10 USD = 3,800 CUP
50 USD = 19,000 CUP
100 USD = 38,000 CUP
Euro (EUR):
10 EUR = 4,100 CUP
50 EUR = 20,500 CUP
100 EUR = 41,000 CUP
500 EUR = 205,000 CUP
Stalled Currency Reform in Cuba
The much-anticipated currency reform announced by the Cuban Government remains at a standstill. Despite assurances that "alternatives" are being evaluated, Economy Minister Joaquín Alonso acknowledged that any changes would pose significant risks to an economy already strained by a shortage of foreign currency and basic goods.
What happened to the promised overhaul of Cuba's currency market? Initially announced as imminent for 2025, the reform aimed at a floating exchange rate has been put on hold. During the recent Congress of the National Association of Economists and Accountants of Cuba (ANEC), Minister Alonso admitted that "alternatives are under review," but also warned that "the risk is high."
Despite Prime Minister Manuel Marrero's assurance in December 2024 that monetary restructuring was imminent, the minister's latest statements reflect a more cautious stance. "Any measures must ensure that the exchange rate does not spiral out of control," Alonso cautioned, recognizing that without an improvement in the supply of goods, the system would remain under pressure.
Currently, the Cuban economy operates with three exchange rates: an official rate of 24 CUP for state enterprises, another of 120 CUP for banking transactions with the public, and the informal rate exceeding 370 CUP, where real transactions are concentrated. This fragmentation has created what the government itself calls a "distorted" exchange market.
The dollar has become a key reference point and has fostered partial dollarization, exacerbating inequality, especially among those without access to remittances or foreign currency income. Economists like Pavel Vidal and Mauricio de Miranda have questioned the viability of a "managed" floating rate by the State in a centralized economy. De Miranda even suggested involving the private sector in the exchange system under state regulation, but so far, the official response has been to maintain absolute control.
Meanwhile, the promise of a fairer and more flexible exchange system remains unfulfilled. In practice, most Cubans remain trapped in a monetary framework that penalizes the use of the Cuban peso and rewards access to foreign currency.
FAQs on Cuba's Currency Situation
Why is the dollar rising in Cuba's informal market?
The dollar is rising due to an increase in demand, as predicted by the Cuban Currency and Finance Observatory, signaling a potential "excess demand" in the market.
What are the current exchange rates in Cuba?
As of June 21, 2025, the exchange rate for the dollar is 380 CUP, for the euro 410 CUP, and for the MLC 260 CUP.
What is the status of Cuba's currency reform?
The currency reform in Cuba is currently stalled. The government is evaluating alternatives, but significant risks are involved, delaying any immediate implementation.