This Monday, the Cuban informal currency market remains stable. After a weekend of complete tranquility, exchange rates hold steady for the fourth consecutive day, maintaining prices reached last Friday. As of 7:00 a.m. local time on September 1st, the U.S. dollar remains at 410 CUP, while the euro stands 50 pesos higher than the American currency, with an estimated selling average of 460 CUP, as reported by elTOQUE. Meanwhile, the Freely Convertible Currency (MLC) is still valued at 190 CUP.
In July, Manuel Marrero announced forthcoming changes to Cuba's official exchange market, changes expected to be implemented in the second half of the year. However, nothing has materialized yet.
The Reality Behind Cuba's Currency Exchange Rates
Recent reports from the Cuban government have highlighted an increase in the average monthly salary to 6,649 pesos during the first half of 2025, marking a 16.4% rise compared to the same period last year. This figure, released by the National Office of Statistics and Information (ONEI) and echoed by Cubadebate, was presented as a positive indicator of official economic policy.
Yet, this salary hike offers little relief to the population amidst rampant inflation and the ongoing devaluation of the Cuban peso. The stark reality is that the informal market rate keeps the dollar at 410 CUP, rendering the new average salary equivalent to a mere $16.22 per month. Essentially, a worker's monthly wage barely suffices to cover even the most basic necessities.
Is the Salary Increase Meaningful?
Despite claims of increased wages, the purchasing power continues to plummet. In June, the ONEI announced a rise in the average monthly salary to 6,506.5 pesos, equivalent to only $17 at the informal exchange rate prevailing in the island at that time. Even Vice President Salvador Valdés Mesa acknowledged in February that "it is not possible to live on a salary of 6,000 pesos."
Indeed, his statement holds true. Today, a Cuban needs between 30,000 and 60,000 pesos per month to barely survive, as estimated by independent economists. In a country where most basic goods are sold in dollars or MLC, a salary in pesos is practically useless.
Ultimately, the official announcement of a salary increase does not provide relief for Cubans. Instead, it is another attempt to disguise a structural problem with numbers. Salaries may rise nominally, but inflation, dollarization, and scarcity consume any potential gains. While the government boasts of wage increases, ordinary Cubans remain trapped in a fragmented economy with a devalued currency and an unattainable basic basket.
Current Exchange Rate Comparisons
According to the exchange rates on September 1st, the equivalence of U.S. dollar bills to Cuban pesos is as follows:
- 1 USD = 410 CUP
- 5 USD = 2,050 CUP
- 10 USD = 4,100 CUP
- 20 USD = 8,200 CUP
- 50 USD = 20,500 CUP
- 100 USD = 41,000 CUP
For Euro bills, the conversion to Cuban pesos is:
- 1 EUR = 460 CUP
- 5 EUR = 2,300 CUP
- 10 EUR = 4,600 CUP
- 20 EUR = 9,200 CUP
- 50 EUR = 23,000 CUP
- 100 EUR = 46,000 CUP
- 200 EUR = 92,000 CUP
- 500 EUR = 230,000 CUP
Understanding the Cuban Economic Crisis
Why is the Cuban peso devalued?
The Cuban peso is devalued due to a combination of factors including economic mismanagement by the government, inflation, and a lack of foreign investment.
How does the informal market affect Cuban currency exchange rates?
The informal market dictates exchange rates based on supply and demand, often offering rates that better reflect the economic conditions compared to the official rates.
What impact does inflation have on Cuban salaries?
Inflation severely erodes the purchasing power of Cuban salaries, making it difficult for workers to afford basic necessities despite nominal wage increases.