The informal currency market in Cuba witnessed significant shifts on Saturday, October 11, 2025, as the euro reached a new high, continuing the upward trend observed throughout the week. The European currency climbed to 515 Cuban pesos (CUP), up by three from Friday's rate, while the US dollar (USD) maintained its record value of 455 CUP. Meanwhile, the Freely Convertible Currency (MLC) saw a slight dip, reducing to 208 CUP after holding steady at 210 in recent days.
Currency Exchange Rates on the Rise
The standout feature of the day's trading was the euro's new milestone, widening the gap with the dollar to a margin of 60 CUP. Since early September, the euro has surged by over 30 CUP, driven by escalating distrust in the Cuban peso and a liquidity crunch in official exchange channels. This upward trajectory highlights the mounting pressure in a market where demand for foreign currency far exceeds supply.
US Dollar's Steady Climb
The US dollar continues to solidify its position after a significant leap during the week, holding firm at 455 CUP. In just two months, the greenback has risen over 80 pesos, marking a 22% increase. This sharp ascent underscores the rapid depreciation of the Cuban peso and a persistent flight towards foreign currencies as a safer financial haven.
The MLC, primarily used in state-run stores, experienced a minor correction but remains at elevated levels with little sign of stability. Despite this brief drop, the overall trend remains unchanged: all three currencies are significantly above their August values, with no indications of a halt in the peso's decline.
Economic Outlook Amidst Uncertainty
Experts agree that Cuba's informal market is undergoing a precarious adjustment phase as both the dollar and euro gain strength, while national income in CUP continues to erode. Without structural changes or transparency in exchange policy, Cuba's economy remains ensnared in a depreciative spiral that most acutely affects those reliant on state salaries and pensions.
Understanding Cuba's Currency Crisis
What is causing the euro to rise in Cuba?
The euro's rise in Cuba is primarily due to a growing distrust in the Cuban peso and a lack of liquidity in official exchange channels, leading to increased demand for the European currency.
How much has the US dollar increased in the informal market?
In the past two months, the US dollar has increased by over 80 pesos, reflecting a 22% rise in the informal market.
What impact does the currency devaluation have on Cuban citizens?
The devaluation primarily impacts those dependent on state salaries and pensions, as their income in CUP loses purchasing power, forcing many to seek foreign currencies as financial refuge.