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U.S. Dollar Experiences Price Drop in Cuba's Informal Market

Friday, January 2, 2026 by Matthew Diaz

As of January 2, 2026, the exchange rate for the U.S. dollar stands at 435 Cuban pesos (CUP), according to the reference rate released by the independent outlet elTOQUE.

The American currency remains the most sought-after in the streets of Cuba, driven by cash shortages and the necessity to purchase essential goods on the black market or travel abroad. This price underscores the growing mistrust in the Cuban peso and the national banking system's liquidity issues.

Meanwhile, the euro is valued at 480 CUP, establishing itself as the strongest currency against the peso. Although it circulates less than the dollar, it remains stable in tourism transactions and remittances from Europe.

The freely convertible currency (MLC) has once again dropped in price, now trading at 395 CUP, five pesos less than the previous day. Its value is crucial for those relying on state-run stores that operate in foreign currency, where prices continue to climb and basic goods remain scarce.

Exchange Rates in Cuba's Informal Economy

Friday, January 2, 2026 - 06:37

Exchange rate for the dollar (USD) to Cuban pesos (CUP): 435 CUP

Exchange rate for the euro (EUR) to Cuban pesos (CUP): 480 CUP

Exchange rate for the MLC to Cuban pesos (CUP): 395 CUP

Currency Conversion Rates

U.S. Dollar to Cuban pesos:

  • $1 USD → 435 CUP
  • $2 USD → 870 CUP
  • $5 USD → 2,175 CUP
  • $10 USD → 4,350 CUP
  • $20 USD → 8,700 CUP
  • $50 USD → 21,750 CUP
  • $100 USD → 43,500 CUP

Euro to Cuban pesos:

  • €5 EUR → 2,400 CUP
  • €10 EUR → 4,800 CUP
  • €20 EUR → 9,600 CUP
  • €50 EUR → 24,000 CUP
  • €100 EUR → 48,000 CUP
  • €200 EUR → 96,000 CUP
  • €500 EUR → 240,000 CUP

Understanding Cuba's Informal Currency Market

Why is the U.S. dollar highly demanded in Cuba?

The U.S. dollar is in high demand due to the lack of cash, the need to purchase essentials on the black market, and the desire to travel internationally.

What causes the euro to remain stable in Cuba?

The euro's stability is attributed to its role in tourism and remittances from Europe, despite its lower circulation compared to the dollar.

How does the MLC's value impact Cuban consumers?

The MLC's value is critical for consumers relying on state-run stores, where foreign currency is required and prices are escalating while goods remain limited.

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