The U.S. dollar has shattered expectations by surpassing the psychological barrier of 400 Cuban pesos (CUP) in the informal market this Tuesday, reaching an unprecedented high. This surge highlights the ongoing trend of the national currency's depreciation, which the government uses to pay millions of its workers. According to the reference rate from elTOQUE, as reported by CiberCuba, today the dollar is valued at 402 CUP. This follows a month of steady increases, solidifying the greenback's position as the most sought-after currency on the island.
August 19, 2025 - 06:00
Exchange rates:
- USD to CUP: 402 CUP
- EUR to CUP: 450 CUP
- MLC to CUP: 200 CUP
A Month of Constant Climbing
In mid-July, the dollar was hovering around 387 pesos, closing the month at approximately 390 CUP. Since then, its value has been on a consistent rise: it hit 395 CUP by the end of July, climbed to 397 by August 8, and reached its former peak of 400 pesos on August 12, before breaking through the 400 peso mark on August 19.
Within just four weeks, the U.S. dollar appreciated by over 15 CUP. This trend underscores both the declining confidence in the national currency and the preference for foreign cash for commercial transactions and savings.
Divergent Paths for Euro and MLC
The euro has mirrored this upward trajectory, rising from 436 CUP at July’s end to a current record of 450 CUP achieved in mid-August, further boosting the appeal of the European currency amid financial instability. Conversely, the Freely Convertible Currency (MLC) has seen a significant decline, dropping from 225 CUP in July to 200 CUP recently. This decline highlights the lack of trust in this digital currency, which was introduced as part of Miguel Díaz-Canel's failed economic and monetary "restructuring" plan.
Widening Gap in Currency Exchange
The growing disparity among major currencies underscores the fragility of Cuba's exchange system. As the dollar and euro continue to gain strength, the peso weakens and the MLC rapidly devalues, widening the gap between the official and informal markets, further diminishing the purchasing power of Cuban workers' wages.
For many Cubans, this escalation translates into an immediate increase in the cost of goods and services, especially imported food and products priced in dollars. With the dollar now above 400 CUP, inflationary pressures on households are intensifying, with no signs of stabilization on the horizon.
Understanding Cuba's Currency Crisis
Why is the U.S. dollar in high demand in Cuba?
The U.S. dollar is preferred for its stability compared to the Cuban peso, making it a preferred choice for savings and transactions, especially given the national currency's ongoing depreciation.
How has the euro performed in Cuba's currency market?
The euro has seen a similar appreciation trend, reaching a new high of 450 CUP recently, reflecting its increased attractiveness in a financially unstable environment.
What is the impact of the MLC's decline?
The MLC's drop signals a lack of confidence in this digital currency, which was part of an unsuccessful economic strategy by the Cuban government, further complicating the financial landscape.