The value of the US dollar is on the rise in Cuba. As of Thursday morning, the American currency reached 392 CUP in Cuba's informal market. This marks an increase of two pesos compared to its average selling price since July 24. Meanwhile, the other two currencies, the euro and the Freely Convertible Currency (MLC), remain unchanged from the previous day, with the euro at 440 CUP and the MLC at 220 CUP.
According to constant monitoring by elTOQUE, the median exchange rate of the dollar over the past 24 hours suggests further increases, with it reaching 395 CUP, edging closer to the 400 mark. The euro's selling median also rose to 445 CUP, while the MLC saw an unexpected lift to 225 CUP.
Exchange Rates and Currency Conversion
On July 31, 2025, at 8:22 a.m. in Cuba, the exchange rate for the USD to CUP according to elTOQUE was 392 CUP. For the euro, it stood at 440 CUP, and for the MLC, it was 220 CUP. Here's how US dollar bills convert to Cuban pesos at these rates:
- 1 USD = 392 CUP
- 5 USD = 1,960 CUP
- 10 USD = 3,920 CUP
- 20 USD = 7,840 CUP
- 50 USD = 19,600 CUP
- 100 USD = 39,200 CUP
For the euro:
- 1 EUR = 440 CUP
- 5 EUR = 2,200 CUP
- 10 EUR = 4,400 CUP
- 20 EUR = 8,800 CUP
- 50 EUR = 22,000 CUP
- 100 EUR = 44,000 CUP
- 200 EUR = 88,000 CUP
- 500 EUR = 220,000 CUP
Government Plans and Economic Challenges
Midway through this month, Cuban Prime Minister Manuel Marrero Cruz informed the National Assembly of People's Power (ANNP) about a new "management, control, and allocation mechanism for foreign currency" set to be implemented in the second half of 2025. This initiative is part of the "Government Program to correct distortions and reinvigorate the economy."
Marrero stated that the new model aims to transform the official exchange market, consolidate financing schemes, and supposedly create more efficient redistribution of foreign currency generated by state enterprises. However, the informal market continues to dominate, with the Cuban peso losing value and remittances from emigrants being the primary support for millions of households across the country.
Cubans are compelled to purchase dollars on the street to buy food, medicine, or pay for immigration paperwork. Economists have long warned that any attempt to reorganize the Cuban exchange system without an inclusive policy will only exacerbate inequality. Without real access to foreign currency, the population remains trapped in a parallel economy that disproportionately affects the most vulnerable.
Understanding the Currency Situation in Cuba
Why is the US dollar increasing in value in Cuba?
The US dollar is increasing in value in Cuba due to demand in the informal market and the devaluation of the Cuban peso. Remittances and the need for foreign currency for essential goods and services contribute to this trend.
What are the implications of the rising dollar value for Cubans?
The rising dollar value makes it more expensive for Cubans to purchase foreign currency needed for essential items and services, increasing economic pressure and inequality.