For the second consecutive day, the dollar rises in price in Cuba, setting a new sales record, according to the daily report from elTOQUE, which documents the fluctuations of currencies on the island.
At dawn on this August 20th, the US dollar rises by three pesos at once, reaching 405 CUP per unit.
The dollar is ending a rising August in the Cuban informal market.
After being stuck at 390 pesos for several days in July, on the 31st of that month it rose to 392 CUP and since then has climbed 13 pesos in three weeks.
Exchange Rate Evolution
At the same time, the growing depreciation of the national currency, with which the State pays millions of its workers, has been solidifying.
The euro, for its part, holds this Wednesday at 450 CUP per unit, a rate it has maintained for several days.
Also unchanged is the Free Convertible Currency (MLC) which, after a sustained decline, is currently holding strong at 200 CUP, refusing to drop below the psychological threshold of 200 pesos.
Exchange rate today, 08/20/2025 - 8:00 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 405 CUP.
Exchange rate of the euro EUR to CUP according to elTOQUE: 450 CUP.
Exchange rate from MLC to CUP according to elTOQUE: 200 CUP.
The rising dollar: A symptom of the structural collapse of the Cuban economy
On August 11, the US dollar reached 400 Cuban pesos (CUP) in the informal market, a historical record that, rather than indicating a speculative shock, confirmed the deep and sustained deterioration of the Cuban economy.
Thus warns the Observatory of Coins and Finance of Cuba (OMFi), cited in an analysis by journalist Mayli Estévez in elTOQUE.
The accelerated depreciation of the peso is directly linked to the advancement of dollarization, the loss of confidence in the Freely Convertible Currency (MLC), and the inability of income in CUP to cover basic needs.
The phenomenon has widened the gap between those who receive remittances in foreign currency and those who rely solely on the peso.
This is compounded by factors such as the contraction of GDP for the fifth consecutive year, the decline in tourism, the lack of productive investment, and GAESA's control over foreign currency reserves outside the Central Bank's circuit.
“How and at what cost will an attempt be made to contain a process that directly affects the pockets of Cubans?”, questioned the cited source.
The rise of the dollar is ultimately a visible symptom of a deeper crisis, which calls into question not only monetary stability but also the viability of the current economic model in Cuba.
Equivalence of United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates on August 20:
1 USD = 405 CUP.
5 USD = 2,025 CUP.
10 USD = 4,050 CUP.
20 USD = 8,100 CUP.
50 USD = 20,250 CUP.
100 USD = 40,500 CUP.
Equivalence of Euro bills (EUR) to Cuban Peso (CUP):
1 EUR = 450 CUP.
5 EUR = 2,250 CUP.
10 EUR = 4,500 CUP.
20 EUR = 9,000 CUP.
50 EUR = 22,500 CUP.
100 EUR = 45,000 CUP.
200 EUR = 90,000 CUP.
500 EUR = 225,000 CUP.
In July, Manuel Marrero announced transformations in the official currency market in Cuba, changes that - as indicated - are expected to take place in this second half of the year. However, nothing has been finalized so far.
FAQ about the rise of the dollar in Cuba and its economic impact
Why is the dollar rising in Cuba?
The dollar in Cuba is rising due to the accelerated depreciation of the Cuban peso, the dollarization of the economy, and the lack of trust in the freely convertible currency (MLC). Furthermore, the scarcity of foreign currency in official channels, persistent inflation, and high demand for dollars for private imports and savings contribute to this trend.
How does the increase of the dollar affect the purchasing power of Cubans?
The rise of the dollar makes basic products and services more expensive, as many of them are dollarized or reliant on imports. This reduces the purchasing power of those who earn in Cuban pesos, increasing the inequality between those who receive remittances in foreign currencies and those who depend on state wages. Inflationary pressure raises the cost of living and complicates daily survival.
What are the consequences of the decline of the Cuban peso for Cuba's economy?
The decline of the Cuban peso reflects a structural crisis in Cuba's economy, manifested in a loss of confidence in the national currency and an increase in dollarization. This leads to inflation, heightens pressure on the prices of basic goods and services, and exacerbates economic inequality. Furthermore, without foreign currency, the government faces challenges in importing essential goods, impacting the well-being of the population.
What measures has the Cuban government announced to address the currency crisis?
The Cuban government has announced a new "management, control, and currency allocation mechanism" for the second half of 2025. This model aims to transform the official exchange market and redistribute the foreign currency generated by state-owned enterprises more efficiently. However, so far, no concrete actions have been taken, and the informal market continues to dominate.
Filed under:
