On Tuesday, the U.S. dollar and euro soared to unprecedented levels in Cuba's unofficial currency market, further highlighting the collapse of the nation's monetary system under the communist regime.
According to the latest data from elTOQUE, the dollar is now trading at 545 Cuban pesos (CUP), while the euro has reached 625 CUP. Meanwhile, the freely convertible currency (MLC) stands at 440 CUP.
Unprecedented Exchange Rates
As of Tuesday, May 12, 2026, the exchange rates paint a grim picture: 545 CUP for the dollar, 625 CUP for the euro, and 440 CUP for the MLC. These figures surpass Monday's rates, which were 542 CUP for the dollar, 620 CUP for the euro, and 425 CUP for the MLC. This marks an increase of three CUP for the dollar, five CUP for the euro, and 15 CUP for the MLC in just 24 hours.
Rapid Depreciation Throughout the Week
The ongoing week has seen a steep decline in the value of the Cuban peso. The dollar started at 540 CUP on Monday, May 5, climbed to 543 CUP by Sunday, May 10—which was a record at that time—and continued its historic depreciation to today's 545 CUP.
The euro also hit a previous high of 620 CUP on Thursday, May 8, maintained until yesterday, and jumped another five CUP this Tuesday. Since breaking the 600 CUP barrier on April 19, the euro has gained 25 CUP in less than a month.
Historical Perspective and Economic Repercussions
Looking back, the Cuban peso has lost about 95% of its value against the dollar since 2020, when it exchanged at 42 CUP. The year-over-year depreciation from January to April 2026 was 45%, more than double the 22% rate in 2025.
This continuous devaluation is fueled by a mix of structural issues that the Cuban government has failed to address. These include the halt of Mexican oil supplies since January 2026, an ongoing energy crisis with chronic blackouts, a decline in tourism, and reduced remittances.
Additionally, the removal of gasoline subsidies on February 1, 2026, which increased the price per liter by 500%, and the unsuccessful Macroeconomic Stabilization Program have exacerbated inflation.
Impact on Cuban Population
The consequences for ordinary Cubans are severe. Average wages in Cuba range between 16 and 54 dollars a month, depending on the exchange rate used. As the informal exchange rate rises, it further erodes the already limited purchasing power of the Cuban people.
The Economic Commission for Latin America and the Caribbean (ECLAC) forecasts Cuba to have the weakest economy in Latin America in 2026, a prediction that is increasingly validated by the informal market statistics.
Key Questions About Cuba's Economic Crisis
Why is the Cuban peso depreciating so rapidly?
The rapid depreciation of the Cuban peso is due to structural issues such as the suspension of Mexican oil supplies, a severe energy crisis, declining tourism, and reduced remittances, alongside failed government policies.
What is the impact of the currency collapse on ordinary Cubans?
The currency collapse severely affects Cubans' purchasing power, with average monthly wages equating to just 16-54 dollars, further diminished by the rising informal exchange rates.
How has the removal of gasoline subsidies affected Cuba's economy?
The elimination of gasoline subsidies led to a 500% increase in fuel prices, contributing to soaring inflation and economic hardship.