In a significant development within Cuba's informal market, the U.S. dollar and euro have risen in value, while the Freely Convertible Currency (MLC) has dropped. The standout event this Thursday is the notable climb of the dollar, which had previously seen only modest increases, typically not exceeding one or two pesos at a time.
On the morning of July 24, the dollar jumped to 390 CUP, three pesos more than its previous selling rate of 387 CUP, which had been stable since July 18. Although indicators had pointed to a potential rise in the dollar's value over the past few days, it was only today that the independent outlet elTOQUE confirmed this surge.
The Euro's Modest Rise
The euro also saw an increase, climbing to 436 CUP—a modest rise of one peso—but nevertheless a record figure for informal euro trading in Cuba. In contrast, the MLC continues its downward trend, plummeting by five units to settle at 220 CUP.
The median exchange rate over the last 24 hours remains at 440 CUP for the euro, a figure that has been common in recent days.
Current Exchange Rates
As of 7:59 a.m. on July 24, 2025, in Cuba, the exchange rates according to elTOQUE are as follows:
- Dollar (USD) to CUP: 390 CUP
- Euro (EUR) to CUP: 436 CUP
- MLC to CUP: 220 CUP
The conversion rates for U.S. dollars to Cuban pesos are:
- 1 USD = 390 CUP
- 5 USD = 1,950 CUP
- 10 USD = 3,900 CUP
- 20 USD = 7,800 CUP
- 50 USD = 19,500 CUP
- 100 USD = 39,000 CUP
For euros, the conversion rates are:
- 1 EUR = 436 CUP
- 5 EUR = 2,180 CUP
- 10 EUR = 4,360 CUP
- 20 EUR = 8,720 CUP
- 50 EUR = 21,800 CUP
- 100 EUR = 43,600 CUP
- 200 EUR = 87,200 CUP
- 500 EUR = 218,000 CUP
Government's Proposed Economic Overhaul
Last week, Cuban Prime Minister Manuel Marrero Cruz announced to the National Assembly of People's Power that a new "mechanism for managing, controlling, and allocating foreign currency" will be implemented in the second half of 2025. This is part of the "Government Program to correct distortions and reinvigorate the economy." Marrero stated that the new model will involve restructuring the official exchange market, consolidating financing schemes, and supposedly redistributing foreign currency generated by state enterprises more efficiently.
Despite these government plans, the informal market continues to set the pace, with the Cuban peso losing value and remittances from migrants supporting millions of households. Cubans are compelled to buy dollars on the street to purchase food, medicine, or pay for immigration procedures.
Experts have long warned that any attempt to reorganize the currency system without an inclusive policy will only deepen inequality. Without real access to foreign currency, the population remains trapped in a parallel economy that punishes the most vulnerable.
Understanding Cuba's Exchange Market Dynamics
Why has the dollar surged in value in Cuba?
The dollar's surge is attributed to fluctuating demand in the informal market and economic instability within the country, leading to a higher exchange rate.
What impact does the fall of the MLC have on the Cuban economy?
The decline of the MLC impacts the purchasing power of those relying on it, further destabilizing the currency market and increasing reliance on informal exchange methods.
How might the government's new currency management program affect everyday Cubans?
The program aims to streamline currency allocation and control, but without broad access to foreign currency, it risks exacerbating economic disparities and leaving many Cubans reliant on the informal market.