On Friday, October 3rd, Cuba’s informal currency market closed without any fluctuations compared to previous days, cementing a historic high that underscores the country’s severe economic crisis. According to the Informal Market Representative Rate (TRMI) published by elTOQUE, the US dollar remains at 440 CUP, the euro at 500 CUP, and the Freely Convertible Currency (MLC) at 210 CUP.
This marks the third consecutive day without changes in major foreign currencies, following Wednesday’s breakthrough when the euro crossed the symbolic 500 CUP threshold—a level that has never been recorded since the monitoring of the parallel market began. That same day, the dollar also climbed to 440 CUP, reinforcing an upward trend that had been building over previous weeks. Since then, these currencies have stabilized at record highs, highlighting the collapse of the Cuban peso.
The Illusion of Stability
The apparent stability of recent days does not indicate calm; rather, it signifies the entrenchment of a critical level of devaluation that directly impacts the population. With the euro at 500 CUP and the dollar at 440, the purchasing power of salaries in the national currency is drastically reduced, exacerbating the struggle to obtain food, medicine, and basic goods, which are increasingly traded in dollars.
The MLC, used in state-run stores selling essential goods, remains at 210 CUP, showing less volatility compared to the euro and the dollar. However, its value is still three times the official exchange rate set by the government at 120 CUP, a gap that fosters distrust in state institutions and positions the informal market as the true benchmark for transactions.
Wednesday’s Record: A Turning Point
October 1st marked a historic day: the euro surged from 498 to 500 CUP, and the dollar rose from 438 to 440 CUP, reaching unprecedented levels. Since January 2021, when elTOQUE began publishing the TRMI, such high values had never been recorded.
The Cuban Observatory of Currencies and Finance (OMFi) has clarified that these figures reflect structural imbalances: GDP contraction, energy crisis, a downturn in tourism, stalled productive investments, commerce dollarization, and the military’s control over reserves. Adding to this is the mass emigration, further weakening the island’s economy and fiscal framework.
Everyday Impact on Cubans
For ordinary Cubans, the stability of foreign currencies at historic highs translates into growing hardship. The average monthly salary in Cuban pesos barely suffices to purchase a few dollars in the informal market, limiting access to imported basic goods. The gap between official figures and the reality of people’s financial situations has never been wider.
While the state maintains artificial rates at CADECA and state banks, most of the population relies on a parallel market that sets values four times higher than the official rates.
Government Response Awaited
In late 2024, the government announced plans to establish a floating exchange system aligning the official rate closer to the market rate. However, nearly a year later, no concrete plan has been presented, nor any signs of implementing the measure. Independent economists warn that any attempt at exchange unification must start from figures close to the TRMI, which would mean officially acknowledging the Cuban peso’s collapse.
For now, the historic record set on Wednesday remains in effect. As the dollar and euro hold firm at their peaks, millions of Cubans face a reality defined by rampant inflation, rising daily costs, and a lack of immediate relief prospects.
FAQs on Cuba’s Informal Currency Market
Why are the dollar and euro at record highs in Cuba’s informal market?
The record highs are due to a combination of structural economic imbalances, including GDP contraction, energy crisis, and the dollarization of commerce. These factors have led to a collapse of the Cuban peso and increased demand for foreign currencies.
How does the high exchange rate impact everyday life in Cuba?
The high exchange rate severely reduces the purchasing power of salaries in the national currency, making it difficult for Cubans to afford food, medicine, and basic goods, many of which are traded in dollars.
What is the Cuban government’s response to the currency crisis?
The government announced intentions to implement a floating exchange system to align the official rate with the market. However, no concrete plans have been presented, and independent economists suggest any changes should reflect the current TRMI rates.
