The U.S. dollar soared to an all-time high in Cuba's informal market this Thursday, trading at 535 Cuban pesos (CUP) for sale, marking an increase of three pesos from the previous day.
This marks the second consecutive day of ascent for the American currency, which had already set a record on Wednesday by climbing to 532 CUP, two pesos higher than Tuesday's close.
At its new value of 535 CUP, the dollar surpasses the maximum projection made by the Cuban Currency and Finance Observatory (OMFi) for the end of April, which was 533 CUP.
Meanwhile, the euro remains unchanged this Thursday, holding steady at 605 CUP, the same level it reached on Wednesday. This price also exceeds OMFi's forecast of 604 CUP for the month.
The euro broke the psychological barrier of 600 CUP on April 19, marking a historic milestone, and has not retreated since, stabilizing at that level for ten days before rising by five pesos on Wednesday.
The Freely Convertible Currency (MLC) has, however, declined this Thursday, dropping ten pesos to 400 CUP, continuing the downward trend that began on Wednesday when it fell from 410 CUP.
The dollar's rise throughout April has been steady and intense: from 515 CUP at the end of March, the currency has climbed by 20 pesos this month, equating to a 3.9% increase.
The previous record before this upward cycle was set on April 22, when the dollar jumped four pesos in a single day to 530 CUP, a level it maintained for several consecutive days.
The gap between the informal and official markets is increasingly pronounced: the Central Bank of Cuba set the dollar at 494 CUP and the euro at 578.67 CUP in its official rate as of April 28, significantly below street prices.
Key structural factors contributing to the continuous depreciation of the Cuban peso include an energy crisis caused by halted Venezuelan crude shipments and the suspension of Mexican supplies since January 2026, a decline in tourism, a shortage of foreign currency within the banking system, and excessive monetary issuance linked to the fiscal deficit.
Additionally, the introduction of high-denomination bills of 2,000 and 5,000 CUP by the Central Bank on April 1 reflects the collapse of purchasing power on the island, where 1,000 CUP is worth less than two dollars.
Historically, the Cuban peso has lost approximately 95% of its value against the dollar since 2020, when it exchanged at 42 CUP per dollar. In just the past 12 months, the U.S. currency has increased by 47.8% in the informal market, climbing from 345 CUP to the current 535 CUP.
Understanding the Dollar's Impact on Cuba's Economy
What factors are driving the dollar's rise in Cuba?
The dollar's rise in Cuba is primarily driven by structural issues such as the energy crisis due to interrupted oil shipments, a decline in tourism, a shortage of foreign currency in the banking sector, and excessive monetary issuance linked to fiscal deficits.
How does the official market rate compare to the informal market rate?
The official market, as set by the Central Bank of Cuba, lists the dollar at 494 CUP and the euro at 578.67 CUP. This is significantly lower than the informal market rates, where the dollar trades at 535 CUP and the euro at 605 CUP.
What historical trends have been observed in the Cuban peso's value?
Since 2020, the Cuban peso has depreciated by about 95% against the dollar, dropping from 42 CUP per dollar to the current rate of 535 CUP. Over the past year alone, the dollar's value surged by 47.8% in the informal market.