Recently, the euro has experienced a downturn in Cuba's informal market. This decline follows two consecutive days of significant increases, which pushed the European currency to a record high of 418 CUP per unit. As of Wednesday morning, the euro has settled at 415 CUP, reflecting a decrease of three pesos from Tuesday's peak.
Regarding the US dollar, as of 8:00 a.m. local time in Cuba on June 25, it remains steady at an average of 380 CUP, a rate it reached on Saturday. Meanwhile, the Freely Convertible Currency (MLC) has shown no fluctuation, holding at 260 CUP for several days.
The recent slowdown in the euro's momentum is also evident in its purchasing price, which has dropped to 410 CUP, according to the daily report from the independent outlet elTOQUE.
Exchange Rates for June 25, 2025, 8:04 a.m. in Cuba:
- USD to CUP according to elTOQUE: 380 CUP.
- EUR to CUP according to elTOQUE: 415 CUP.
- MLC to CUP according to elTOQUE: 260 CUP.
USD to CUP Conversion:
- 1 USD = 380 CUP
- 5 USD = 1,900 CUP
- 10 USD = 3,800 CUP
- 20 USD = 7,600 CUP
- 50 USD = 19,000 CUP
- 100 USD = 38,000 CUP
EUR to CUP Conversion:
- 1 EUR = 410 CUP
- 5 EUR = 2,050 CUP
- 10 EUR = 4,100 CUP
- 20 EUR = 8,200 CUP
- 50 EUR = 20,500 CUP
- 100 EUR = 41,000 CUP
- 200 EUR = 82,000 CUP
- 500 EUR = 205,000 CUP
Government Delays Promised Currency Exchange Reform
Amidst these fluctuations, it has emerged that the anticipated implementation of a floating exchange rate in 2025 has been postponed. During the recent ANEC Congress, Economy Minister Joaquín Alonso revealed that while alternatives are being considered, it is crucial to "minimize risks" due to severe shortages of foreign currency and goods.
Alonso stated, "We have defined actions for each phase, but the risk is significant. Any measure must ensure the exchange rate does not skyrocket." Currently, Cuba's economy operates with at least three different exchange rates: an official rate for businesses (24 CUP), a bank rate for the public (120 CUP), and a more than 370 CUP rate in the informal market. This fragmentation, described as a "distortion" by the authorities, exacerbates inequality.
Pavel Vidal, an economist with the Observatory of Currencies and Finances of Cuba (OMFi), warned back in December that a real floating rate is unprecedented in Cuba and questioned its feasibility under a centralized state system. Other analysts, like Mauricio de Miranda, suggest incorporating the private sector with regulated exchange houses.
De Miranda cautioned, "As long as the State maintains its economic monopoly, any adjustment will be an illusion."
Understanding Cuba's Currency Exchange Dynamics
Why did the euro decline in Cuba's informal market?
The euro's decline follows two days of significant increases in the informal market, leading to a natural correction in its value.
What are the current exchange rates in Cuba?
As of June 25, 2025, the exchange rates are 380 CUP for the USD, 415 CUP for the euro, and 260 CUP for the MLC, according to elTOQUE.
What challenges does Cuba face with its current exchange rates?
Cuba faces challenges due to operating with multiple exchange rates, which causes economic distortions and increases inequality.