For the second day in a row, the price of the U.S. dollar has increased in Cuba, setting a new record according to the daily report from elTOQUE, which tracks currency fluctuations on the island. As of the morning of August 20, the dollar jumped three pesos, reaching 405 CUP per unit.
This August, the dollar has been on a steady upward trajectory in Cuba's unofficial market. After being stuck at 390 pesos for several days in July, it rose to 392 CUP on the last day of that month, climbing a total of 13 pesos in just three weeks. Meanwhile, the continued devaluation of the national currency, which the Cuban government uses to pay millions of its workers, has intensified.
The euro remains stable at 450 CUP per unit, a rate it has maintained for several days. The Freely Convertible Currency (MLC) also holds firm at 200 CUP, resisting the psychological barrier of dropping below 200 pesos despite previous declines.
Exchange Rates on August 20, 2025
According to elTOQUE, the exchange rates are as follows:
- USD to CUP: 405 CUP
- EUR to CUP: 450 CUP
- MLC to CUP: 200 CUP
The Dollar's Climb: A Reflection of Cuba's Economic Troubles
On August 11, the U.S. dollar reached an unprecedented 400 Cuban pesos (CUP) in the informal market. Far from being a speculative anomaly, this milestone underscores the profound and ongoing deterioration of Cuba's economy. This is highlighted by the Cuban Observatory of Currencies and Finances (OMFi) in an analysis by journalist Mayli Estévez, published on elTOQUE.
The swift depreciation of the peso is closely linked to the rise of dollarization, diminishing trust in the Freely Convertible Currency (MLC), and the inadequacy of income in CUP to meet basic needs. This situation has widened the gap between those receiving remittances in foreign currencies and those relying solely on the peso.
Contributing factors include a five-year consecutive contraction of GDP, a decline in tourism, lack of productive investment, and GAESA's control over foreign currency reserves, bypassing the Central Bank's circuit. "How and at what cost will they attempt to contain a process that directly affects the financial wellbeing of Cubans?" the cited source questioned.
The dollar's surge is ultimately a visible symptom of a deeper crisis, challenging not only monetary stability but also the feasibility of Cuba's current economic model.
Currency Conversion: Dollar and Euro to Cuban Peso
As of August 20, the conversion rates are:
- 1 USD = 405 CUP
- 5 USD = 2,025 CUP
- 10 USD = 4,050 CUP
- 20 USD = 8,100 CUP
- 50 USD = 20,250 CUP
- 100 USD = 40,500 CUP
For the euro:
- 1 EUR = 450 CUP
- 5 EUR = 2,250 CUP
- 10 EUR = 4,500 CUP
- 20 EUR = 9,000 CUP
- 50 EUR = 22,500 CUP
- 100 EUR = 45,000 CUP
- 200 EUR = 90,000 CUP
- 500 EUR = 225,000 CUP
In July, Manuel Marrero announced upcoming changes to Cuba's official exchange market, expected to take place in the second half of the year. However, no concrete actions have been taken so far.
Understanding Cuba's Economic Crisis
Why is the U.S. dollar rising in Cuba?
The rise of the U.S. dollar in Cuba is primarily due to the depreciation of the Cuban peso, increased dollarization, and a lack of trust in the national currency.
What are the implications of the dollar's increase for Cubans?
The dollar's increase widens the economic gap between Cubans receiving remittances in foreign currencies and those relying on the peso, making it harder for the latter to meet basic needs.