The informal currency exchange market in Cuba experienced a notable shift on Sunday, September 21, as the US dollar (USD) soared to 425 Cuban pesos (CUP), a five-peso increase from the previous day. Meanwhile, the euro (EUR) remained steady at 480 CUP, and the Freely Convertible Currency (MLC) dipped to 205 CUP, after closing at 210 CUP on Saturday.
Exchange Rates on Sunday, September 21, 2025
USD to CUP: 425 CUP
EUR to CUP: 480 CUP
MLC to CUP: 205 CUP
The most significant highlight of the day was the dollar’s surge, breaking the stability observed throughout much of the week and reaching a new peak. After hovering around 420 CUP for several days, the US dollar unexpectedly jumped, setting a recent record and potentially paving the way for increased pressure in the parallel market.
On the other hand, the euro maintained its record streak seen in recent days, solidifying its position as the most expensive street currency. Its stability at 480 CUP accentuates the gap with the dollar, which remains 55 CUP apart—a disparity not seen until recently.
The MLC showed a contrasting trend: after a strong rise during the week, closing Friday at 210 CUP, it dropped by five pesos to 205. This decline could reflect an adjustment in demand for currency aimed at purchases in the country’s poorly stocked state-run stores.
The dollar’s rise is particularly noteworthy as pensioners have just begun receiving their new payments. A five-peso increase in a single day means those relying on the black market for foreign currency see their purchasing power shrink even further.
Every increase in the dollar equates to a fresh blow to the already fragile domestic economy in a nation where basic basket prices exceed 30,000 CUP monthly. The start of this week will determine if the dollar’s leap was a one-time occurrence or the beginning of a new upward trend in Cuba’s informal market.
A Month of Consistent Dollar Growth
This Sunday’s surge to 425 CUP is not an isolated incident but the culmination of an upward trend that has been solidifying over the past month. According to the informal market graph, since late August, the US dollar rose from around 405 CUP to surpassing the 425 CUP mark today, representing a 20-peso appreciation in just four weeks.
During the first half of September, the dollar moved gradually, with one or two peso increases, reaching 420 CUP. This relative stability gave way in the latter half of the month to a more abrupt rise, culminating in the new peak reached this weekend.
The monthly behavior reveals two key dynamics: the dollar’s resistance to dropping below 410 CUP, which served as a floor for several days, and the Cuban peso’s inability to withstand demand pressure, allowing the US dollar to break psychological barriers and reach 425 CUP.
If this pace continues, the dollar might close September around 430 CUP, confirming a trend that further erodes the purchasing power of wages and pensions and exacerbates the fears of a population increasingly anticipating that the greenback will exceed 500 CUP by the end of the year.
For Cubans, each rise in the US dollar signifies a direct hit to the cost of living in an economy heavily reliant on foreign currency, with the government led by Miguel Díaz-Canel failing to compensate workers adequately.
Frequently Asked Questions about the Cuban Currency Market
Why did the US dollar increase in value in Cuba’s black market?
The increase in the US dollar’s value is attributed to heightened demand and limited supply in the informal market, exacerbated by economic pressures and the inability of the Cuban peso to sustain its value.
How does the rising dollar impact Cubans?
The rising dollar undermines purchasing power, increasing the cost of living as many essential goods depend on foreign currency, widening the economic strain on Cuban households.
What are the implications of the euro’s stability at 480 CUP?
The euro’s stability at 480 CUP highlights its position as the most valued currency on the street and underscores the currency gap with the US dollar, reflecting broader economic challenges.
