The informal currency market in Cuba has set a new symbolic record this Sunday: the euro reached 404 Cuban pesos (CUP), surpassing for the first time in over a year the barrier that had not been broken since May 2024.
The rise of the euro confirms a sustained upward trend over the past few days. In just the last 24 hours, the European currency increased by four pesos, going from 400 CUP on Saturday to 404 CUP this Sunday.
Sunday, June 8, 2025 - 1:00 PM
Exchange rate from the dollar (USD) to Cuban pesos (CUP): 375 CUP
Exchange Rate Evolution
Euro (EUR) to Cuban pesos (CUP) exchange rate: 404 CUP
Exchange rate from (MLC) to Cuban pesos CUP: 260 CUP
On its part, the US dollar (USD) also continues its rise and is now at 375 CUP, while the Freely Convertible Currency (MLC) remains stable at 260 CUP.
This rise reinforces the perception of exchange rate instability in the Cuban economy, where the informal market has become the main monetary thermometer in the absence of a reliable official rate and a functional state currency market.
Bill equivalences this Sunday
Dollar (USD):
1 USD = 375 CUP
10 USD = 3,750 CUP
20 USD = 7,500 CUP
50 USD = 18,750 CUP
100 USD = 37,500 CUP
Euro (EUR):
1 EUR = 404 CUP
10 EUR = 4,040 CUP
20 EUR = 8,400 CUP
50 EUR = 24,000 CUP
100 EUR = 40,400 CUP
200 EUR = 80,800 CUP
500 EUR = 202,000 CUP
A milestone with implications for the household economy
The exchange rate of the euro at 404 CUP has immediate consequences for the economy of Cubans.
This figure, in addition to being symbolic, reflects the ongoing loss of purchasing power of the Cuban peso, in a context where state salaries remain tied to a weakened currency.
The direct impact is felt in food, medications, transportation, and access to basic services, many of which are dollarized or linked to payments in MLC.
This new peak of the euro revives the memory of May 2024, when similar figures were reported. On that occasion, the European currency slightly exceeded 400 CUP, driven by a shortage of foreign currency in official channels and rising inflation.
Today, with an even more fragile economy and no signs of effective recovery, the return to these levels raises concerns in a population that is already struggling to meet basic needs.
A sensitive and speculative market
The Observatory of Currencies and Finances of Cuba (OMFi) recently warned that the informal currency market is “highly volatile and sensitive to speculative and political factors.”
The absence of a transparent exchange market and the lack of trust in official economic policies have encouraged informal operations, where supply and demand are driven by speculative and social logic.
The recent implementation of new rates by ETECSA—known as "the rate hike"—
It has created an additional demand for foreign currency, particularly to pay for internet and communication services.
This context puts even more pressure on the black market, where many Cubans attempt to access dollars and euros to maintain contact with their relatives abroad or to cover everyday expenses.
Immediate prospects
The rise of the euro and the sustained increase of the dollar could continue if measures are not implemented to instill confidence in the national currency, and the "partial dollarization of the economy" moves towards a total dollarization, without a comprehensive reform that establishes an official exchange rate and appropriate salaries for workers and dignified pensions for retirees.
Meanwhile, Cubans continue to face one of the most painful consequences of the crisis: a currency that loses value every day and a foreign currency that becomes increasingly unattainable.
Frequently Asked Questions about the Rise of the Euro in Cuba's Informal Market
Why has the euro reached 404 Cuban pesos in the informal market?
The euro has reached 404 Cuban pesos due to currency instability in the Cuban economy, where the informal market has become the main monetary indicator. The lack of a reliable official exchange rate and a functional state exchange market has driven this significant increase.
How does the rise of the euro in the informal market affect Cubans?
The rise of the euro directly affects the economy of Cubans, diminishing their purchasing power in a context where state wages are tied to a weakened currency. It impacts food, medicine, transportation, and access to basic services, many of which are dollarized.
What is the trend of the informal currency market in Cuba?
The informal currency market in Cuba is highly volatile and speculative, influenced by a lack of trust in official economic policies. The absence of a transparent exchange market has resulted in supply and demand being governed by speculative and social logic.
What measures could stabilize the value of the euro in Cuba?
To stabilize the value of the euro in Cuba, it is necessary to implement measures that build trust in the national currency. This includes establishing an official exchange rate and adjusting wages and pensions to align with the economic reality, thus avoiding a total dollarization without a comprehensive reform.
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