This past Saturday, the euro surged to 800 Cuban pesos (CUP) in Cuba's informal currency market, according to data released by elTOQUE at 12:00 pm local time, marking an unprecedented peak for the European currency on the island.
In the informal market, euro offers fluctuated between 740 and 830 CUP, while the U.S. dollar also hit a record high at 695 CUP, with transactions ranging from 620 to 760 CUP. Meanwhile, the MLC closed at 501.74 CUP.
All monitored currencies showed an upward trend throughout the day.
Rapid Climb of the Euro and Dollar
The euro's sharp rise in June has been staggering; it started the month at 645 CUP and gained 155 pesos in just 20 days, a jump of over 24%.
The dollar, beginning at 585 CUP on June 1st, saw an increase of 110 pesos, exceeding 18% in the same time frame.
Early Saturday, the euro was already at 795 CUP and the dollar at 693 CUP, both just a few pesos shy of their respective psychological barriers, which were surpassed during the day.
Gap Between Informal and Official Rates
The chasm between the informal market and official rates is striking. According to elTOQUE's exchange rate data, the Banco Popular de Ahorro (BPA) and Bandec sell euros at 660.73 CUP and dollars at 576.30 CUP, while CADECA in hotels and airports offers the highest rates in the formal market: 686.64 CUP per euro and 598.90 CUP per dollar.
Those purchasing foreign currencies on the street pay between 100 and 140 pesos more than the state's recognized rates.
Economic Measures and Public Reaction
This new record comes a day after Prime Minister Manuel Marrero Cruz presented a package of 176 economic measures to the National Assembly, the largest since the Special Period, which includes the authorization of private exchange houses, a real-time digital exchange market, currency auctions, and private remittance channels. The informal market responded with further increases, rather than confidence.
Even Miguel Díaz-Canel acknowledged to the Assembly that "there are obstacles that don't come from outside or the embargo," an unusual admission of internal responsibility in the crisis.
The public reaction on social media was largely skeptical, with "Does anyone believe them?" being a common sentiment.
Economic Outlook and Historical Perspective
Economist Elías Amor warned that Cuba's fiscal deficit exceeds 12% of GDP and that inflation could rise to 30-40% if the structural imbalance is not addressed.
"No foreign currency will enter Cuba in the coming months," he noted, adding that "the problem is that needs can be met with currency, and people will be willing to pay whatever it takes for it."
From a historical perspective, the collapse of the Cuban peso is devastating: in 2020, the dollar traded at around 42 CUP in the informal market; this Saturday, it hit 695 CUP, a more than 95% loss in value over six years.
The euro, which was at 500 CUP on October 1, 2025 — considered a historic record at the time — has risen by 60% in just eight months.
Understanding Cuba's Currency Crisis
What caused the euro to reach a historic high in Cuba?
The euro reached a historic high due to increased demand in the informal market, exacerbated by economic uncertainty and the inability of formal channels to meet currency needs, leading to significant price hikes.
How does the informal market impact Cuba's economy?
The informal market significantly impacts Cuba's economy by creating a parallel currency exchange system that often undermines official rates, driving inflation and highlighting the inefficiencies of the formal financial system.