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Euro Hits All-Time High in Cuba's Informal Currency Market: Current Exchange Rates

Tuesday, June 24, 2025 by Robert Castillo

On Tuesday, the euro achieved an unprecedented peak in Cuba's informal currency market, highlighting the ongoing decline of the Cuban peso and the deepening of a structural crisis that the government under Miguel Díaz-Canel has been unable to resolve. The European currency is now trading at 418 Cuban pesos (CUP) per unit, three more than the previous day, marking the highest value recorded since the monitoring of informal exchange rates on the island began by elTOQUE.

This milestone, while symbolically significant, underscores the continuous devaluation of the Cuban peso against major foreign currencies in a context of economic stagnation, currency shortages, and a lack of structural reforms. In contrast, the U.S. dollar (USD) remains stable at 380 CUP, and the Freely Convertible Currency (MLC) is stagnant at 260 CUP, showing no signs of improvement.

Informal Exchange Rates in Cuba

Tuesday, June 24, 2025 - 06:00

  • Dollar (USD) to Cuban peso (CUP) exchange rate: 380 CUP
  • Euro (EUR) to Cuban peso (CUP) exchange rate: 418 CUP
  • (MLC) to Cuban peso (CUP) exchange rate: 260 CUP

Why This Surge?

The euro's value has been on a steady upward trajectory since early May. Over the past 30 days alone, it has risen by more than 15 pesos, which economists attribute to an increase in demand, particularly from Cubans needing euros for migration processes, overseas purchases, or travel to European destinations.

However, this movement is not merely seasonal. Analyzing the euro's behavior over the past three months reveals sustained growth. Looking back to 2021, based on historical data from CiberCuba, the trend shows how the euro has surged from under 50 CUP in 2021 to over 400 in 2025, multiplying its value more than 13-fold in just four years. The new record of 418 CUP significantly surpasses the previous peak of late May 2024, when the euro nearly hit 405 CUP before a slight temporary correction.

Government Inaction

This informal market milestone occurs amid a scenario where the Cuban government has yet to implement the promised monetary reform. Despite announcing in 2024 that they would move towards a floating exchange rate in 2025, authorities have recently admitted the plan remains "under analysis" with high risks involved.

Recently, Economy Minister Joaquín Alonso stated that "the actions are defined," but they will not be executed until conditions are suitable to prevent a "currency explosion." Meanwhile, the state maintains three parallel exchange rates: 24 CUP per dollar for state enterprises, 120 CUP at CADECA for the public, and the informal market, which serves as the real benchmark.

An Unequal System

The impact of this disparity is felt by millions of Cubans. Those who do not receive remittances in foreign currency or work in state sectors with wages in pesos see their purchasing power evaporate. The informal market, albeit unofficial, has become the only one reflecting the actual price of money in the Cuban economy.

The euro's behavior in the informal market has become a reflection of the widespread distrust in the national currency and the lack of official options for accessing foreign currency. For now, today's record once again raises alarms: the Cuban peso continues to lose value, and the population remains trapped in a dysfunctional exchange system with no reforms in sight.

Frequently Asked Questions about Cuba's Currency Crisis

Why is the euro rising in Cuba's informal market?

The euro is rising due to increased demand, particularly from Cubans needing euros for migration processes, overseas purchases, or travel to Europe. This demand has driven the euro's value up significantly in recent months.

What are the current exchange rates for USD and MLC in Cuba?

As of June 24, 2025, the U.S. dollar remains at 380 CUP, and the Freely Convertible Currency (MLC) is at 260 CUP, with no signs of change in the informal market.

Is the Cuban government planning any monetary reforms?

Although the Cuban government announced plans for a floating exchange rate in 2025, the implementation remains uncertain as the plan is still "under analysis" due to high risks, according to recent government statements.

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