The rise of the dollar and euro in Cuba’s informal market shows no sign of slowing down. In recent hours, both currencies have experienced price hikes on the streets of the island, as reported in the daily update from the independent outlet elTOQUE. By Monday morning, the euro had jumped five pesos to reach a record 530 CUP, while the dollar climbed for the third consecutive day to 475 CUP, marking an increase of three pesos from the previous day. Meanwhile, the Moneda Libremente Convertible (MLC) remains steady at 200 CUP.
Current Exchange Rates in Cuba
As of October 20, 2025, at 7:11 a.m. in Cuba, the exchange rates are as follows according to elTOQUE:
- USD to CUP: 475 CUP
- EUR to CUP: 530 CUP
- MLC to CUP: 200 CUP
Reasons Behind the Dollar and Euro Increase
The October report from the Observatory of Currencies and Finances of Cuba (OMFi) attributes the depreciation of the peso to a complex crisis that compels Cubans—from households to small and medium enterprises (SMEs)—to rely on stronger currencies for protection against inflation, business operations, or mere survival. The lack of faith in the national currency and the perception of an inescapable crisis in the short term reinforce this defensive behavior.
The decline in national production, exacerbated by the energy crisis and lack of resources, has forced SMEs to seek supplies abroad, increasing their demand for foreign currency. This has led to fierce competition in the informal market among businesses, consumers, and traders.
Impact of Economic Challenges
The ongoing capital flight and the use of cryptocurrencies or offshore accounts to safeguard incomes are fueled by widespread distrust in the government's ability to implement stabilizing policies. An excess of pesos in circulation without backing production, along with the failure of the banking process, has spurred immediate conversion of pesos into foreign currency. This speculative process has intensified due to the perception that the peso's value diminishes daily.
Furthermore, the sustained decline in tourism has severely impacted the influx of fresh foreign currency into the country. The reduced flow of dollars through tourism exacerbates the imbalance between supply and demand for foreign currency. The OMFi has projected that the dollar could reach 473 CUP and potentially surpass 500 CUP if current extreme conditions persist. elTOQUE's report this Monday indicates that it has already surpassed 473 CUP. The euro might reach 551 CUP, and the MLC around 215 CUP.
Currency Conversion Examples
As of October 20, here are some examples of currency conversions between the US Dollar and the Cuban Peso (CUP):
- 1 USD = 475 CUP
- 2 USD = 950 CUP
- 5 USD = 2,375 CUP
- 10 USD = 4,750 CUP
- 20 USD = 9,500 CUP
- 50 USD = 23,750 CUP
- 100 USD = 47,500 CUP
And for the Euro:
- 1 EUR = 530 CUP
- 2 EUR = 1,060 CUP
- 5 EUR = 2,650 CUP
- 10 EUR = 5,300 CUP
- 20 EUR = 10,600 CUP
- 50 EUR = 26,500 CUP
- 100 EUR = 53,000 CUP
- 200 EUR = 106,000 CUP
- 500 EUR = 265,000 CUP
Government's Inaction on Exchange Rate Policy
Since the end of 2024, the Cuban government announced plans to implement a floating exchange rate system in 2025 to narrow the gap between official and informal currency values. However, with two and a half months left in the year, the regime has yet to address this issue.
FAQs on Cuba's Currency Crisis
Why are the dollar and euro increasing in Cuba?
The increase is due to a multidimensional crisis causing Cubans to turn to stronger currencies for inflation protection, business operations, and survival. The lack of trust in the national currency and the government's inability to stabilize the situation contribute to this trend.
How does the decline in tourism affect Cuba's economy?
The decrease in tourism reduces the influx of fresh foreign currency, worsening the imbalance between the supply and demand for foreign exchange.
What are the projected exchange rates for the dollar and euro?
The OMFi projects that the dollar could reach 473 CUP and possibly exceed 500 CUP, while the euro might climb to 551 CUP if current conditions persist.