The informal currency exchange market in Cuba presents a mixed picture this Tuesday: the dollar persists in its downward trend, the euro accelerates its upward trajectory, and the MLC is losing some of the remarkable gains it posted on Monday.
Based on informal exchange rate monitoring, the dollar is trading at 655 Cuban pesos (CUP) on Tuesday, showing a decline of three pesos from Monday. Meanwhile, the euro has increased by five pesos, reaching 755 CUP, and the MLC has dropped by 16 pesos to 476 CUP.
Informal Exchange Rates in Cuba
On Tuesday, July 14, 2026, at 3:00 AM, the informal exchange rate for the dollar (USD) stands at 655 CUP, the euro (EUR) at 755 CUP, and the MLC at 476 CUP. Monday's trading day already displayed divergent movements among currencies: the dollar fell by two pesos to 658 CUP, the euro rose by three pesos to 750 CUP, and the MLC saw the week's most notable jump, recovering 50 pesos in less than 24 hours, from 442 to 492 CUP.
The volatility of the MLC has been extreme recently. The freely convertible currency had plummeted to 419 CUP on Saturday, bounced back to 442 on Sunday, and surged to 492 CUP on Monday. This Tuesday, it has retreated to 476 CUP.
The Dollar's Recent Performance
The dollar has dropped a total of 40 pesos from its recent record high of 695 CUP, reached on June 21, 2026, just two days after the National Assembly approved 176 economic measures that include the legalization of private banks and the establishment of a digital currency market. Ironically, this reform package initially spiked the demand for foreign currency instead of stabilizing the market.
The gap between the official exchange rate of the Central Bank of Cuba (BCC), which is set at 592 CUP per dollar and 674.23 CUP per euro, and the informal market rates remains vast: a 63-peso difference for the dollar and nearly 100 pesos for the euro.
Impact on Cuban Purchasing Power
This disparity has direct implications for the purchasing power of Cubans. The minimum wage, raised to 3,210 CUP as of July 1, equates to less than five dollars at informal exchange rates, and the official average salary of 6,930 CUP barely amounts to 10.5 dollars per month.
The situation is even more dire for the over 1.7 million retirees who receive the minimum pension of 4,000 CUP, equivalent to slightly more than six dollars. Independent economists estimate that meeting basic needs in Cuba requires approximately 96,060 pesos monthly, roughly 14 times the official average salary.
In six years, the Cuban peso has depreciated by over 95% against the dollar: from 42 CUP in 2020 to 655 CUP today. Independent economists warn that as long as the real scarcity of foreign currency, triple-digit inflation, fiscal deficit, and lack of confidence in the Cuban peso continue, "the rate will inevitably rise again."
Understanding Cuba's Currency Crisis
What is causing the decline of the dollar in Cuba?
The decline of the dollar in Cuba is influenced by recent economic reforms that increased the demand for foreign currency, along with ongoing economic instability and lack of confidence in the peso.
How does the gap between official and informal exchange rates affect Cubans?
The large gap between official and informal exchange rates significantly reduces the purchasing power of Cubans, making it harder for them to afford basic necessities.
Why is the MLC experiencing such volatility?
The MLC's volatility is attributed to fluctuating market conditions and economic measures that create instability in its value.