This Friday, the euro hit an unprecedented peak in Cuba's informal currency exchange, trading at a staggering 620 Cuban pesos (CUP) per unit, as reported by the monitoring service of elTOQUE this morning. Meanwhile, the U.S. dollar is valued at 540 CUP, and the MLC at 405 CUP.
The relentless climb of the euro has been a continuous trend since it first shattered the 600 pesos barrier on April 19, a milestone previously unseen. Since then, the European currency has steadily increased: reaching 605 CUP on May 3, 610 on May 4, 615 on May 5, 618 on May 6, 619 on May 7, and now 620 this Friday. Within just three weeks, it has surged an additional 20 pesos beyond this psychological threshold.
Rising Euro: A Deepening Crisis
The broader trend is even more concerning. Over the past year, the euro's value has escalated by approximately 74%, from around 418 CUP in June 2025, climbing to 485 in September, 515 in October, 565 in February 2026, and 580 in March.
The fresh surge observed in early May reinforces that no official forecast has accurately predicted the actual pace of devaluation. The Observatorio de Monedas y Finanzas de Cuba (OMFi) had projected a ceiling of 604 CUP by the end of April, a figure the market surpassed with ease.
Economic Strain on Cuban Citizens
The gap between the official rate set by the Banco Central de Cuba and the market reality grows more pronounced. As of this Friday, the state institution lists the euro at 585.03 CUP, over 35 pesos less than the real price Cubans must pay.
The real hardship is reflected in what these 620 pesos mean for those earning in the national currency. The minimum pension, set at 4,000 CUP since September 2025 after an increase hailed as a social achievement by the regime, now amounts to a mere 6.45 euros. The average official salary of 6,930 CUP, according to the 2025 data from the Oficina Nacional de Estadísticas e Información, translates to just over 11 euros at the informal exchange rate.
In practical terms, a retiree would need over a year and three months of full pension to gather 100 euros; a worker earning the average salary would require almost a year and a half to purchase 200 euros.
The Stark Reality of Income and Costs
These figures starkly contrast with real prices. A carton of eggs now exceeds 3,000 CUP, representing 75% of the minimum pension. The Observatorio Cubano de Auditoría Ciudadana estimated in July 2025 that a family needs at least 30,000 CUP monthly just to cover food costs, seven times what a pensioner earns. At that time, the U.S. dollar fluctuated between 370-390 CUP in the informal market.
Today, the dollar trades on the street at 540 CUP. Unsurprisingly, 99% of Cuban retirees report that their pension fails to meet basic needs.
The grim scenario of wage inequality in Cuba is exacerbated by a macroeconomic context deemed by international organizations as the worst since the Special Period, possibly even worse. The CEPAL predicts a Cuban GDP decline of -6.5% for 2026, while the Economist Intelligence Unit estimates -7.2%. Since 2020, the Cuban peso has lost 95% of its value against the dollar, and the country's economic crisis continues to worsen week after week.
The root cause of this collapse is not the U.S. embargo but rather 67 years of communist dictatorship that have dismantled the country's productive base, created a structural dependency on foreign currency, and rendered the national currency salaries barely sufficient for survival.
With the euro at 620 pesos, rampant inflation and a soaring dollar further erode the pensions of those with the least, while the regime remains silent on providing any real solutions.
Understanding Cuba's Currency Turmoil
Why is the euro rising so quickly in Cuba?
The euro's rapid increase is largely attributed to the Cuban economy's deepening crisis and the lack of effective government intervention. The continuous depreciation of the Cuban peso against foreign currencies exacerbates this trend.
How does the high euro exchange rate impact Cuban citizens?
The high exchange rate significantly reduces the purchasing power of those earning in Cuban pesos, making it difficult to afford basic necessities. Pensions and salaries, when converted to euros, barely cover minimal living expenses.
What measures has the Cuban government taken to address the currency crisis?
So far, the Cuban government has not implemented effective measures to curb the currency crisis. The lack of a robust economic policy and reliance on outdated systems have hindered any potential solutions.