A sudden rise in the dollar shook the informal currency market in Cuba this Saturday, following the announcement by the state telecommunications company, ETECSA, of new restrictions on mobile top-ups in Cuban pesos and an enhancement of dollarized services.
The US dollar, which had been at 370 CUP for several days, rose on May 31 to 372 CUP in the average reported by elTOQUE.
Informal exchange rate in Cuba Saturday, May 31, 2025 - 10:00
- Exchange rate of the dollar (USD) to Cuban pesos CUP: 372 CUP
- Exchange rate of the euro (EUR) to Cuban pesos CUP: 395 CUP
- Exchange rate of (MLC) to Cuban pesos CUP: 264 CUP
Although the increase is only three pesos in the average rate, it reflects a sustained rise in transactions, which had already been hinted at since the previous day, when the median of operations reached 375 CUP.
Exchange Rate Evolution
On its part, the euro remains stable at 395 CUP, unchanged from previous days, despite the fact that on Friday the median of transactions reached 400 CUP. Regarding the freely convertible currency (MLC), it remains at 265 CUP after a surprising increase of five pesos the day before.
The increase in foreign currency prices occurs just hours after ETECSA announced that it will limit the monthly top-ups in national currency to 360 CUP for the main balances of mobile lines, a decision that directly impacts millions of users.
In addition, several of the mobile data plans and combined packages will now only be available for purchase in dollars, either through international cards or the digital wallet MiTransfer.
These measures have caused concern among citizens, who observe the restrictions on the use of the Cuban peso for basic services, while the dollarization of key sectors intensifies.
The need to obtain foreign currency to stay connected, coupled with the dissatisfaction caused by the measure—which has sparked calls for a boycott of the state-owned company on social media—has driven demand for dollars in the informal market.
The recent evolution of the exchange rate confirms that the value of foreign currencies remains extremely sensitive to political and economic decisions, as has occurred on previous occasions with announcements of banking measures or fiscal policies.
With this new change in direction, ETECSA shakes up a market that is already volatile and subject to intense speculation.
Frequently Asked Questions about the Rise of the Dollar and ETECSA Rates in Cuba
Why did the dollar rise in Cuba's informal market?
The dollar has increased in the informal market of Cuba due to the announcement of new ETECSA rates, which limit top-ups in Cuban pesos and enhance dollarized services. This has raised the demand for foreign currency, as citizens need dollars to stay connected and access basic services, driving up the value of the dollar.
How do the new ETECSA rates affect Cubans?
The new ETECSA rates impact Cubans by limiting mobile top-ups in Cuban pesos to 360 CUP per month and requiring dollars for various data plans and combined packages. This measure has generated discontent, as it restricts the use of the Cuban peso for essential services, accentuating the dollarization of key sectors.
What is the trend of the informal currency market in Cuba?
The informal currency market in Cuba is characterized by its volatility, with constant fluctuations in exchange rates due to political and economic decisions. The demand for dollars typically rises in response to announcements that restrict the use of the Cuban peso, such as the recent measures by ETECSA, causing increases in the exchange rate.
Why do Cubans rely on the informal currency market?
Cubans rely on the informal foreign exchange market because the national economy is characterized by scarcity and inflation. With salaries in Cuban pesos being insufficient, gaining access to foreign currencies is necessary to purchase essential products in stores that only accept strong currencies. This dependence encourages daily tracking of the exchange rate to protect their purchasing power.
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