The informal currency market in Cuba is experiencing a moment of stability this Sunday, following a week dominated by a significant increase in the euro's value. According to data gathered by elTOQUE, exchange rates have remained unchanged from the previous day. This stability follows the euro reaching a historic high of 420 Cuban pesos last Tuesday, solidifying its position as the strongest currency in Cuba's informal market.
Current Exchange Rates in Cuba
As of Sunday, June 29, 2025, at 6:00 AM, the informal exchange rates are as follows:
- US Dollar (USD) to Cuban Pesos (CUP): 380 CUP
- Euro (EUR) to Cuban Pesos (CUP): 420 CUP
- MLC to Cuban Pesos (CUP): 260 CUP
Analysis of last week's trends shows the euro steadily climbing from 413 CUP on Sunday, June 22, to a record-breaking 420 CUP by Tuesday, June 24. This surge stabilized by Thursday. Meanwhile, the US dollar has remained stable at 380 CUP over the past several days, and the MLC continues to hover at a historical low of 260 CUP. Unlike the euro, the dollar's graph remains flat, indicating steadiness at 380 CUP for seven consecutive days.
Lack of Government Action and Market Volatility
The government's failure to implement concrete changes in the currency exchange system has contributed to market volatility. Despite announcements in 2024 about introducing a floating exchange rate, authorities have indefinitely delayed this measure, citing the need to minimize risks amid currency shortages and limited market supply.
The current stabilization might be short-lived, as the underlying conditions that fueled the euro's recent rise remain unchanged. The absence of a clear exchange policy and the existence of multiple exchange rates continue to create uncertainty among the Cuban population and economic agents.
Informal Market as a Key Reference
The informal market remains the primary source for acquiring foreign currency, highlighting the tensions and imbalances within the Cuban economy. Future rate developments will largely depend on market expectations and any potential signals from the government regarding upcoming reforms.
While the calm observed this Sunday is temporary, the euro's recent trajectory suggests ongoing pressure. Any external economic or political events could trigger further increases in the coming days. The underlying issues—currency scarcity, distrust in the Cuban peso, and lack of progress on promised monetary reforms—remain unresolved. Without clear governmental direction, the informal market continues to be the de facto benchmark for street-level transactions.
Frequently Asked Questions About Cuba's Informal Currency Market
Why has the euro become the strongest currency in Cuba's informal market?
The euro's position as the strongest currency is due to its recent surge in value, reaching a historic high of 420 Cuban pesos. This is influenced by the lack of a coherent currency exchange policy and ongoing economic uncertainties.
What are the current exchange rates in Cuba's informal market?
As of June 29, 2025, the exchange rates are 380 CUP for the US dollar, 420 CUP for the euro, and 260 CUP for the MLC.
How does the lack of government action affect the currency market in Cuba?
The absence of government reforms in the currency exchange system leads to increased market volatility, as there is no clear policy guiding exchange rates, causing uncertainty among the population and economic players.