Dollar Surges Again in Cuba's Informal Market: No End in Sight for the Climb

On Sunday, Cuba's informal currency market experienced another uptick in the value of the U.S. dollar, continuing its upward trend from recent weeks and keeping the Cuban peso under significant pressure. Meanwhile, the euro remains stable at its recent historical high, and the Moneda Libremente Convertible (MLC) shows no fluctuations.

Current Informal Exchange Rates in Cuba

Sunday, October 19, 2025 - 06:40

Exchange rate for the U.S. dollar (USD) to Cuban pesos (CUP): 472 CUP

Exchange rate for the euro (EUR) to Cuban pesos (CUP): 525 CUP

Exchange rate for the MLC to Cuban pesos (CUP): 200 CUP

According to the daily report from the independent outlet elTOQUE, the informal exchange rate on Sunday stood at 472 Cuban pesos (CUP) for one U.S. dollar (USD), marking a two-point increase from the previous day's rate. In contrast, the euro held steady at 525 CUP, demonstrating a more stable pattern, although its fluctuations tend to be more abrupt than those of the American currency.

MLC's Decline and Dollar's Ascent

The MLC remains stagnant at 200 CUP, its lowest level since summer, underscoring its diminishing significance in everyday transactions due to limited availability in official stores and growing consumer distrust. On the other hand, the relentless rise of the U.S. dollar confirms the ongoing erosion of the Cuban peso's value against the most sought-after foreign currencies on the island.

In recent weeks, the dollar has shown a clear upward trajectory, accumulating a sustained increase that has pushed it to levels unseen since the onset of the current currency crisis. Over the past month, the U.S. currency has gained more than 50 pesos in the informal market, driven by the scarcity of official foreign exchange sources, rising demand among small and medium-sized enterprises, and the continuous decline in confidence in the national currency.

Euro's Stability Amid Economic Uncertainty

Despite the dollar's surge, the euro remains the strongest currency in street transactions, having reached its all-time high in previous days. Its recent stability does not imply tranquility but rather a consolidation at a high point that reinforces its role as a safe haven asset in an economic environment fraught with uncertainty.

With this recent development, Cuba's informal market wraps up another week of instability, with the dollar and euro dictating the pace of an economy increasingly de facto dollarized. Analysts agree: without credible monetary intervention, the Cuban peso is likely to continue its downward spiral, possibly closing the year at record levels of devaluation.