This Sunday, October 12, the informal currency market in Cuba witnessed significant increases in key foreign currencies. The U.S. dollar (USD) climbed to 458 Cuban pesos (CUP), marking a three-peso increase from the previous day and setting a new all-time high. Similarly, the euro (EUR) continued its upward trend, reaching a record-breaking 520 CUP, up by five points from the day before, solidifying its position as the most expensive currency in the market.
Informal Exchange Rates in Cuba
Sunday, October 12, 2025 – 04:33
USD to CUP: 458 CUP
EUR to CUP: 520 CUP
Freely Convertible Currency (MLC) to CUP: 205 CUP
In contrast, the Freely Convertible Currency (MLC) experienced a slight decline for the second consecutive day, dropping to 205 CUP after weeks of relative stability around 210 CUP. This concurrent rise in the dollar and the euro underscores the upward trend that has characterized the market throughout October and seems to validate the concerns of Cubans who largely anticipate that by the end of the year, both currencies could surpass the psychological barrier of 500 CUP.
In just twelve days, the greenback has gained 13 CUP, while the euro has increased by eight, highlighting the rapid deterioration of the Cuban peso and the ongoing erosion of confidence in the national currency. The euro’s new record, now surpassing the dollar by over 60 CUP, demonstrates a growing preference for the European currency among those receiving remittances or engaging in informal market transactions. The widening gap between these currencies underscores the structural weakness of the Cuban peso against any international standard.
The dollar, meanwhile, continues its ascent that began in late September when it breached the 420 CUP threshold. Since then, its value has consistently risen, a trend economists link to persistent inflation, shortages, and the lack of effective measures to curb the depreciation of the CUP.
Conversely, the MLC’s erratic behavior, with its decline to 205 CUP, appears to be a response to a temporary decrease in demand, yet it remains significantly above the official state-set value of 120 CUP. Its volatility, coupled with the rise in strong currencies, perpetuates uncertainty among consumers who rely on it to purchase essential goods from the poorly stocked state stores.
With the dollar nearing 460 CUP and the euro at 520, the situation in the informal market confirms that the Cuban peso is enduring one of its most critical phases. Every rise in these currencies translates into another blow to wages and pensions paid in national currency, whose purchasing power is plummeting without any government-proposed solutions.
This Sunday’s market sends an unequivocal message: while authorities continue to speak of “recovery” and “resilience,” the reality on the ground — the economy experienced on the streets — remains dominated by a currency that is losing value every day and widespread distrust in any official promise of stability.
Key Questions on Cuba’s Informal Currency Market
What is the current exchange rate for the U.S. dollar in Cuba’s informal market?
As of October 12, the U.S. dollar is valued at 458 Cuban pesos in the informal market.
How has the euro performed compared to the U.S. dollar in Cuba’s informal market?
The euro has surpassed the U.S. dollar, reaching a record high of 520 Cuban pesos, indicating a greater demand for the European currency.
Why is the Cuban peso losing value in the informal market?
The Cuban peso’s depreciation is attributed to persistent inflation, shortages, and ineffective measures to stabilize the currency.
