This Sunday, the U.S. dollar reached an unprecedented peak in Cuba's informal market, trading at 543 Cuban pesos (CUP). This represents a three-peso increase from the previous day, according to data from elTOQUE on exchange rates within the island.
Meanwhile, the euro remains steady at 620 CUP, and the Freely Convertible Currency (MLC) has also seen a significant rise, climbing 17 pesos to 430 CUP. This follows a notable increase of 30 pesos observed last Wednesday.
The recent high surpasses the previous record of 540 CUP, a level the dollar had maintained since May 5th, when it set a new benchmark and stayed there until now.
Rapid and Steady Climb
Since mid-April, the ascent has been swift and nearly continuous: starting at 522 CUP on April 11, moving to 525 CUP the following day, reaching 530 CUP by April 22, climbing to 535 CUP on April 30, then to 536 CUP on May 4, and finally hitting 540 CUP on May 5.
Each upward movement of the dollar and euro has shattered the previous week's ceiling.
Economic Challenges Deepen
The Cuban Currency and Finance Observatory (OMFi) confirmed that the year-on-year average depreciation of the peso between January and April 2026 was 45%, more than twice the rate observed throughout 2025, which was 22%.
“The Cuban peso has lost more value against the dollar in the first four months of 2026 than during all of 2025,” the organization cautioned in its report this week.
Since 2020, the peso has plummeted by approximately 95% against the dollar in the informal market, falling from 42 CUP per dollar to the current 543 CUP. This devaluation, coupled with stagnant wages, creates a perfect storm for ordinary Cubans.
Factors Driving the Increase
The collapse of tourism is a significant factor contributing to the upward pressure. In March 2026, only 35,561 international visitors arrived on the island, compared to 197,505 in the same month of 2025, marking an 82% decrease.
During the first quarter, the total was a mere 298,057 tourists, a 48% decline from the previous year, significantly reducing foreign currency inflow into the country.
Additionally, the energy crisis exacerbates the situation, with a generation deficit exceeding 1,400 MW in April, leading to daily blackouts lasting up to 24 hours. This has been worsened since January by the disruption of Venezuelan oil supplies, which had provided between 25,000 and 30,000 barrels per day, following the capture of Nicolás Maduro.
The Central Bank of Cuba has adjusted its official Segment III rate upwards, from 480 to 496 CUP per dollar, a figure that still falls well short of the informal market and does not address the structural causes of the crisis.
The OMFi projects a central scenario of 562 CUP per dollar for the remainder of May, with an extreme range reaching up to 590 CUP, warning of "a high level of uncertainty regarding the evolution of the exchange market in the coming weeks."
Understanding the Economic Crisis in Cuba
What caused the recent surge in the dollar's value in Cuba?
The recent surge in the dollar's value is attributed to several factors, including the collapse of tourism and the ongoing energy crisis, which have drastically reduced foreign currency inflow and increased demand for the dollar.
How has the peso's depreciation affected everyday Cubans?
The depreciation of the peso has significantly affected ordinary Cubans by decreasing their purchasing power and making imported goods more expensive, while wages remain stagnant.
What measures has the Cuban government taken in response to the currency crisis?
The Cuban government has adjusted the official exchange rate upwards but has not yet addressed the underlying structural issues causing the crisis.