In the informal Cuban market, both the euro and the dollar are experiencing a relentless upward trend. Recent reports indicate that these currencies are seeing significant price hikes in street sales across the island, as per the independent media outlet elTOQUE’s daily update.
On Friday morning, the euro skyrocketed by five points, reaching an unprecedented sale price of 525 CUP. Meanwhile, the dollar climbed to 468 CUP, marking a three-peso increase from the previous day. The Freely Convertible Currency (MLC) remains steady at an average sale price of 200 CUP.
Exchange Rates as of October 17, 2025, at 6:46 a.m. in Cuba:
– USD to CUP according to elTOQUE: 468 CUP
– EUR to CUP according to elTOQUE: 525 CUP
– MLC to CUP according to elTOQUE: 200 CUP
Factors Driving Dollar and Euro Increases in Cuba
According to the October report by the Cuba Observatory of Currencies and Finance (OMFi), the peso’s depreciation is driven by a complex crisis that compels Cubans—from households to small and medium enterprises (SMEs)—to resort to stronger currencies as a hedge against inflation, for commercial transactions, or simply to survive.
The lack of trust in the national currency and the belief that the crisis won’t resolve soon bolster this defensive behavior. National production has plummeted, particularly due to the energy crisis and shortage of supplies, forcing SMEs to seek resources abroad, thereby increasing their demand for foreign currency. This creates fierce competition in the informal market among businesses, consumers, and traders.
Additionally, capital flight and the use of cryptocurrencies or foreign accounts to safeguard income are on the rise. This trend is fueled by widespread distrust in the government’s ability to enact stabilizing policies. The oversupply of pesos without production backing, coupled with the failure of the banking process, has prompted immediate conversion of pesos into foreign currency. This speculative process has accelerated amid the perception of the peso’s daily depreciation.
The Tourism Impact and Future Projections
The ongoing decline in tourism has severely impacted the country’s influx of fresh foreign currency. The reduced inflow of dollars through tourism exacerbates the imbalance between supply and demand for foreign currency. The OMFi projects that the dollar could reach 473 CUP and possibly exceed 500 CUP if the extreme conditions persist. The euro might climb to 551 CUP, and the MLC to about 215 CUP.
Conversion Rates for U.S. Dollar (USD) to Cuban Peso (CUP) as of October 17:
1 USD = 468 CUP
5 USD = 2,340 CUP
10 USD = 4,680 CUP
20 USD = 9,360 CUP
50 USD = 23,400 CUP
100 USD = 46,800 CUP
Conversion Rates for Euro (EUR) to Cuban Peso (CUP):
1 EUR = 525 CUP
5 EUR = 2,625 CUP
10 EUR = 5,250 CUP
20 EUR = 10,500 CUP
50 EUR = 26,250 CUP
100 EUR = 52,500 CUP
200 EUR = 105,000 CUP
500 EUR = 262,500 CUP
Since late 2024, the Cuban government announced plans to introduce a floating exchange rate system in 2025 to bridge the gap between the official and informal currency values. However, with just over two months left in the year, the regime remains silent on this matter.
Understanding Cuba’s Currency Crisis
Why are the dollar and euro rising in Cuba?
The appreciation of the dollar and euro in Cuba is attributed to a multifaceted crisis that pushes individuals and businesses to seek stronger currencies to shield against inflation, manage commercial activities, or merely survive.
What role does tourism play in Cuba’s currency situation?
Tourism plays a critical role in Cuba’s economy by bringing in foreign currency. The downturn in tourism has led to a significant decrease in dollar inflows, worsening the supply-demand imbalance for foreign currency.
What are the projected exchange rates for the dollar and euro in Cuba?
Projections suggest the dollar could reach 473 CUP and potentially exceed 500 CUP, while the euro might rise to 551 CUP if current conditions persist.
