In recent developments, foreign currencies in Cuba are showing signs of stability following a historic Wednesday when the euro unexpectedly surged to 500 pesos. This dramatic increase marked a significant threshold, highlighting the ongoing collapse of the national currency.
As of the morning of October 2nd, the euro maintains its position at 500 pesos, while the U.S. dollar remains valued at 440 CUP, a rate it reached the previous day. Meanwhile, the Freely Convertible Currency (MLC), known for its recent decline and volatility, has been steady at 210 CUP for several days.
Exchange Rates on 10/02/2025 - 7:25 a.m. in Cuba:
USD to CUP exchange rate according to elTOQUE: 440 CUP.
EUR to CUP exchange rate according to elTOQUE: 500 CUP.
MLC to CUP exchange rate according to elTOQUE: 210 CUP.
An analytical piece from elTOQUE emphasized that since the introduction of the Informal Market Representative Rate (TRMI) in January 2021, the euro has never reached such a high valuation. The 500 CUP per euro rate is unprecedented in the island's recent history—even during the Special Period of the 1990s post-Soviet Union collapse, the Cuban peso didn't depreciate to such levels against foreign currencies.
According to the Cuban Observatory of Currencies and Finance (OMFi), this record-breaking rate underscores the "structural imbalances of the Cuban economy," including GDP decline, energy shortages, tourism contraction, halted productive investments, internal trade dollarization, and concentration of liquid reserves in military conglomerates. Additionally, the massive emigration phenomenon further weakens the country's productive and fiscal fabric.
Since late 2024, the Cuban government has expressed intentions to introduce a floating exchange system to narrow the gap between official and informal currency values. However, "over six months later, details about its implementation remain undisclosed." Independent economists caution that any attempt to regularize the exchange system should start with a reference rate close to the TRMI. This implies the government would need to officially acknowledge prices four times higher than the current 120 CUP per euro rate maintained by state banks and official exchange houses (CADECA).
USD to CUP Banknote Equivalency on October 2:
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.
EUR to CUP Banknote Equivalency:
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.
Understanding Cuba's Currency Exchange Situation
Why did the euro reach 500 pesos in Cuba?
The euro's surge to 500 pesos reflects the severe depreciation of the Cuban peso due to structural economic imbalances, including GDP decline, energy issues, and a reduction in tourism and investments.
What factors contribute to Cuba's currency instability?
Cuba's currency instability is influenced by structural economic issues such as a shrinking GDP, energy shortages, a declining tourism sector, halted investments, and the dollarization of internal trade.
How is the Cuban government addressing the currency exchange issue?
The Cuban government plans to implement a floating exchange system to reduce the gap between official and informal currency rates, although details on its execution are still pending.
What is the TRMI and its significance in Cuba?
The Informal Market Representative Rate (TRMI) reflects the real exchange rates in Cuba's informal market, which are significantly higher than the official rates, highlighting the currency's actual devaluation.