On Sunday, October 5, Cuba's informal currency market experienced yet another jolt: the U.S. dollar (USD) skyrocketed to 445 Cuban pesos (CUP), climbing four points in just 24 hours and hitting its highest level this year. Meanwhile, the euro (EUR) remains steady at 500 CUP, and the Freely Convertible Currency (MLC) holds at 210 CUP following a week of minor fluctuations.
Current Exchange Rates in Cuba
As of Sunday, October 5, 2025, at 6:00 AM, the exchange rates are as follows:
- USD to CUP: 445 CUP
- EUR to CUP: 500 CUP
- MLC to CUP: 210 CUP
The dollar's increase confirms the upward trend prevailing in the market since late September, widening the gap between the value of foreign currencies and the purchasing power of the Cuban peso. Over the span of just one week, the greenback has added more than 20 pesos, reflecting intense pressure on the national currency amid shortages, persistent inflation, and the government's lack of effective economic measures.
Euro Hits Record High, Remains Stable
Last Wednesday, the euro crossed the symbolic 500 CUP mark, positioning itself as the most expensive currency in the market. Despite seeming stability in recent days, analysts warn this could be a "temporary foothold" before potential further increases if demand for foreign currency continues to rise.
In contrast, the MLC — employed for purchases in state-run stores — remains stable at 210 CUP, though recent weeks have shown underlying volatility. Its price is far from the official 120 CUP, highlighting the stark disconnect between governmental rhetoric and market reality.
Implications of the Dollar's Appreciation
With this recent surge, the dollar has appreciated by over 5% in just seven days. Experts point out that the Cuban peso remains caught in a vicious cycle: lacking trust, productive backing, and a coherent exchange policy.
The question echoes through the streets and across social media: how far and for how long can the Cuban peso withstand this relentless climb of foreign currencies?
Impact of Currency Fluctuations in Cuba
What factors are causing the dollar to rise in Cuba?
The dollar's rise in Cuba is attributed to a combination of factors including persistent inflation, shortages, and a lack of effective economic policies by the government, which have increased pressure on the Cuban peso.
Why is the euro maintaining a high value in the Cuban market?
The euro remains at a high value due to its status as a strong currency and high demand in Cuba, especially after breaking the 500 CUP mark, consolidating its position as the most expensive currency in the market.
What is the significance of the Freely Convertible Currency (MLC) rate in Cuba?
The MLC rate is significant as it is used for purchases in state-run stores in Cuba. Despite its current stability at 210 CUP, its divergence from the official rate of 120 CUP highlights market volatility and disconnect from official pronouncements.