The recent pledge by Manuel Marrero to initiate official changes in Cuba's currency exchange market for the latter half of the year has ignited a significant upheaval in the informal currency market as of Friday morning. For the first time in weeks, the US dollar, euro, and the Freely Convertible Currency (MLC) have all experienced changes in a single day. Both the European and American currencies have increased in value, while the MLC continues its downward trend, raising concerns about its future.
As of 7:00 a.m. local Cuban time on July 18, the dollar is being sold at an average of 387 CUP, marking a two-peso increase from its previous value. The euro has reached a new high of 432 CUP, also up by two pesos from Thursday. Meanwhile, the MLC has dropped significantly by five units, resting at 225 CUP. However, there's more to this story—the median values suggest further currency shifts might occur in the coming hours.
The median data from the last 24 hours indicates the euro could rise to 440 CUP, an extraordinary leap, while the dollar's trading price is reported at 390 CUP.
Exchange Rates Snapshot
Exchange rates as of July 18, 2025, at 7:32 a.m. in Cuba are as follows:
- USD to CUP: 387 CUP
- EUR to CUP: 432 CUP
- MLC to CUP: 225 CUP
Marrero's Promises for Currency Market Reforms
On Wednesday, Manuel Marrero Cruz, Cuba's Prime Minister, addressed the National Assembly of People's Power, announcing a new "management, control, and allocation mechanism for currency exchange" set to be implemented in the second half of 2025. This initiative is part of the "Government Plan to Correct Distortions and Revitalize the Economy." Marrero claims the plan will overhaul the official currency market, consolidate financing schemes, and supposedly distribute the currency generated by state entities more efficiently.
However, this is the third transformation attempt in as many years, and the previous two, led by now-ousted former Minister Alejandro Gil Fernández, ended in failure amid corruption allegations. Marrero asserts that this time, changes will happen, promising direct currency allocations to entities to boost product availability. Yet, similar assurances were made in 2022 about a "grounded" currency exchange system and in 2023 when the CADECAS collapsed, leading to 100-day queues for currency exchanges. Even in 2024, the supposed "flexible" exchange rate market never materialized.
Despite the government's new proclamation, the informal market remains dominant, the Cuban peso is severely devalued, and emigrants' remittances continue to be the economic lifeline for countless households. The "new phase" of currency exchange seems to focus once more on state-run companies, leaving ordinary citizens uncertain about their access to foreign currency.
Cubans are left with little choice but to purchase dollars on the street for essentials like food, medicine, and migration-related procedures, in an economy where everything costs more in MLC. Experts have long warned that any attempt to reorganize the exchange system without an inclusive policy will only worsen inequality. Without genuine access to foreign currency, the population remains trapped in a parallel economy that disproportionately impacts the most vulnerable.
Instead of de-dollarizing the economy, as official rhetoric suggests, the reality is that Cuba is more dollarized than ever, with the Cuban peso losing purchasing power daily. Once again, the government calls for patience and trust, but after repeated failures, Cubans demand tangible results, not empty promises.
Current Currency Equivalencies
Here are the USD to CUP equivalencies based on today's exchange rates:
- 1 USD = 387 CUP
- 5 USD = 1,935 CUP
- 10 USD = 3,870 CUP
- 20 USD = 7,740 CUP
- 50 USD = 19,350 CUP
- 100 USD = 38,700 CUP
For the euro, the equivalencies are:
- 1 EUR = 432 CUP
- 5 EUR = 2,160 CUP
- 10 EUR = 4,320 CUP
- 20 EUR = 8,640 CUP
- 50 EUR = 21,600 CUP
- 100 EUR = 43,200 CUP
- 200 EUR = 86,400 CUP
- 500 EUR = 216,000 CUP
Understanding Cuba's Currency Crisis
What changes did Manuel Marrero announce regarding Cuba's currency market?
Manuel Marrero announced a new management, control, and allocation mechanism for currency exchange to be implemented in the second half of 2025, aiming to correct economic distortions and enhance the economy.
Why is the MLC devaluing while the dollar and euro increase in value?
The MLC's devaluation contrasts with the rising dollar and euro, reflecting concerns about its future and the overall instability in Cuba's informal currency market.
How does the informal currency market impact ordinary Cubans?
Cubans often rely on the informal market to access foreign currency needed for essentials, as the official market remains unreliable, exacerbating economic inequality.
What are the implications of Cuba's ongoing dollarization?
The increasing reliance on dollars indicates a deeper dollarization of Cuba's economy, contradicting government claims and further weakening the Cuban peso's purchasing power.