Following a dip in the euro's value on Tuesday, the European currency made a stunning recovery on Wednesday, soaring to 500 CUP, breaking a crucial threshold that highlights the collapse of the national currency. This surge marks an unprecedented milestone in Cuba's informal market; for the first time since theTOQUE began monitoring currency fluctuations on the island, no currency has reached such a selling price.
Additionally, the U.S. dollar saw an increase on October 1, rising from 438 to 440 CUP, continuing its steady upward trend observed in recent weeks. Meanwhile, the Freely Convertible Currency (MLC) remains stable at 210 CUP, despite its ongoing volatility in recent months.
Exchange Rates as of October 1, 2025 - 7:20 a.m. in Cuba:
- USD to CUP according to theTOQUE: 440 CUP
- EUR to CUP according to theTOQUE: 500 CUP
- MLC to CUP according to theTOQUE: 210 CUP
A New Benchmark in the Informal Market
An analytical piece by theTOQUE emphasized that the recent figures reveal "the rapid depreciation of the Cuban peso and the growing dollarization of the economy," marking a historic event. The 500 CUP per euro rate "is unprecedented in the island's recent history." Even during the Special Period of the 1990s, after the Soviet Union's collapse, the Cuban peso did not experience such high levels of depreciation against foreign currencies.
Since theTOQUE began publishing the Informal Market Representative Rate (TRMI) in January 2021, the euro has never reached such a high valuation. According to the Cuban Currency and Finance Observatory (OMFi), this record highlights "the structural imbalances of the Cuban economy": GDP decline, energy deficits, tourism contraction, halted productive investments, internal trade dollarization, and the concentration of liquid reserves in military conglomerates.
This situation is compounded by massive emigration, which further weakens the country's productive and fiscal framework. In this context, many Cubans favor the euro over the dollar in the informal market due to its greater stability for those with ties to Europe or who travel there.
Understanding the TRMI
The Informal Market Representative Rate (TRMI), published by theTOQUE, uses an automated system to analyze hundreds of currency exchange listings on social networks and classified platforms. An algorithm filters out extreme data and calculates the median of the remaining values, providing an objective reference for actual transactions.
Although the Cuban government has attempted to discredit this methodology, theTOQUE states that the TRMI "is backed by independent economists and international academic publications, such as Applied Economics in the UK."
Will the Government Respond?
Since late 2024, the Cuban government has announced plans to introduce a floating exchange system to close the gap between official and informal currency values. However, "more than half a year later, no details about its implementation have been provided." Independent economists warn that any attempt to regularize the exchange system should start with a reference rate close to the TRMI, meaning the government would have to officially acknowledge prices four times higher than the current 120 CUP per euro maintained by state banks and official exchange houses (CADECA).
The breach of the 500 CUP per euro threshold signifies a critical moment for Cuba's economy. It reflects not only the lack of trust in state monetary institutions but also the unstoppable rise of the informal market as a true indicator of the crisis. As theTOQUE warns, "the disconnect between official figures and the reality of Cuban wallets has never been so stark."
Exchange Equivalents for U.S. Dollars (USD) to Cuban Pesos (CUP), based on October 1 exchange rates:
- 1 USD = 440 CUP
- 5 USD = 2,200 CUP
- 10 USD = 4,400 CUP
- 20 USD = 8,800 CUP
- 50 USD = 22,000 CUP
- 100 USD = 44,000 CUP
Exchange Equivalents for Euros (EUR) to Cuban Pesos (CUP):
- 1 EUR = 500 CUP
- 5 EUR = 2,500 CUP
- 10 EUR = 5,000 CUP
- 20 EUR = 10,000 CUP
- 50 EUR = 25,000 CUP
- 100 EUR = 50,000 CUP
- 200 EUR = 100,000 CUP
- 500 EUR = 250,000 CUP
FAQs About Cuba's Currency Market
What caused the euro to reach 500 CUP in Cuba?
The euro reached 500 CUP due to the accelerated depreciation of the Cuban peso and increasing dollarization of the economy, driven by structural imbalances and external economic pressures.
Why do Cubans prefer euros over dollars in the informal market?
Many Cubans prefer euros over dollars for their relative stability, especially for those with ties to Europe or who frequently travel to the continent.
How does the TRMI provide currency exchange data?
The TRMI uses an automated system to analyze currency exchange listings across social media and classified platforms, filtering out extreme data and providing a median rate as a reference for real transactions.