At the start of July, the euro has made a significant leap in price within Cuba's unofficial currency market. As dawn broke on Tuesday, July 1st, the European currency reached 425 CUP, marking an increase of five pesos from the previous day—a new record high since elTOQUE began tracking these currency fluctuations. Meanwhile, as of 9:00 a.m. local time in Cuba, the U.S. dollar was trading at an average of 382 CUP, maintaining the same level as the day before. The Freely Convertible Currency (MLC) has remained steady at 255 CUP. Daily reports from elTOQUE show increases in the median trading values for both the euro and the dollar over the last 24 hours.
Current Exchange Rates in Cuba
Exchange rates as of 9:12 a.m. on July 1, 2025, in Cuba are as follows:
- USD to CUP: 382 CUP
- EUR to CUP: 425 CUP
- MLC to CUP: 255 CUP
U.S. Dollar (USD) to Cuban Peso (CUP) conversions at these rates are:
- 1 USD = 382 CUP
- 5 USD = 1,910 CUP
- 10 USD = 3,820 CUP
- 20 USD = 7,640 CUP
- 50 USD = 19,100 CUP
- 100 USD = 38,200 CUP
Euro (EUR) to Cuban Peso (CUP) conversions are:
- 5 EUR = 2,125 CUP
- 10 EUR = 4,250 CUP
- 20 EUR = 8,500 CUP
- 50 EUR = 21,250 CUP
- 100 EUR = 42,500 CUP
- 200 EUR = 85,000 CUP
- 500 EUR = 212,500 CUP
Economic Challenges and Currency Exchange
Last month, it was reported that the anticipated implementation of a floating exchange rate in 2025 has been delayed. During the ANEC Congress held in early June, Economy Minister Joaquín Alonso acknowledged the need to "minimize risks" due to the severe scarcity of foreign currency and essential goods, even though "alternatives are being considered." He stated, "We have defined actions for each phase, but the risk is high. Any measures must ensure that the exchange rate does not spiral out of control."
The Cuban economy currently operates with at least three separate exchange rates: an official rate for businesses at 24 CUP, a bank rate for the population at 120 CUP, and an informal market rate of around 380 CUP for the dollar. This fragmented system, which authorities themselves have labeled a "distortion," exacerbates inequality among residents on the island.
Understanding Cuba's Currency Market Dynamics
Why has the euro reached a record high in Cuba's black market?
The euro has soared to a record high in Cuba's black market due to increased demand and a lack of foreign currency availability, reflecting broader economic challenges on the island.
What are the implications of multiple exchange rates on the Cuban economy?
Having multiple exchange rates creates economic distortion and exacerbates inequality, as different sectors and individuals experience varying levels of access to currency and goods.
How does the Cuban government plan to address exchange rate challenges?
The government is considering alternatives and has defined actions for each phase to minimize risks, ensuring the exchange rates remain stable while addressing currency shortages.