The Cuban financial landscape faces significant shifts as the three major currencies experience dramatic changes. While both the dollar and the euro surge in value, the Freely Convertible Currency (MLC) continues its downward spiral, edging closer to a critical low point.
After a minor decline on Monday, the U.S. dollar jumped by two pesos on Tuesday, reaching an unprecedented 400 pesos in Cuba’s informal market—a milestone many had predicted. The euro’s rise was even more striking, leaping five pesos to settle at 450 CUP, further devaluing the Cuban peso and diminishing purchasing power for those without access to foreign currencies. The stark reality is that two euros can now fetch 900 pesos on the informal exchange, meaning some retirees in Cuba are effectively earning just over three euros.
In July, Prime Minister Manuel Marrero hinted at upcoming changes in Cuba’s official exchange market, planned for the latter half of the year. Urgency is crucial, however, as the Cuban government’s economic reforms lag behind the rapid ascent of the dollar and euro, while the MLC languishes. The MLC dropped by five pesos, now standing at 205 CUP, threatening to slip below the 200 mark.
The strengthening of the dollar and euro is fueled by severe shortages of foreign currency in official institutions, rampant inflation, declining domestic production, and the high demand for dollars for private imports, travel, and savings. This currency appreciation negatively impacts the population’s purchasing power, raising the cost of essential goods and services that rely on imports, and exacerbating economic inequality between those with access to foreign exchange and those reliant on local salaries.
Exchange rates as of August 12, 2025, 7:03 a.m. in Cuba: According to elTOQUE, the exchange rate for the U.S. dollar is 400 CUP, the euro is 450 CUP, and the MLC is 205 CUP.
U.S. Dollar (USD) to Cuban Peso (CUP) conversion based on today’s rates:
- 1 USD = 400 CUP
- 5 USD = 2,000 CUP
- 10 USD = 4,000 CUP
- 20 USD = 8,000 CUP
- 50 USD = 20,000 CUP
- 100 USD = 40,000 CUP
Euro (EUR) to Cuban Peso (CUP) conversion:
- 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
Understanding Cuba’s Currency Crisis
Why is the U.S. dollar rising in value in Cuba?
The U.S. dollar is gaining value due to foreign currency shortages in official markets, inflation, decreased domestic production, and increased demand for dollars for imports and savings, causing it to rise in the informal market.
What impact does the euro’s increase have on the Cuban economy?
The euro’s increase further devalues the Cuban peso, reducing the purchasing power of those without access to foreign currency, and increasing the cost of imported goods and services, worsening economic inequality.
