The informal currency market in Cuba continues to dictate the rhythm of everyday economic life, as the devaluation of the Cuban peso dramatically impacts the population’s purchasing power. This Saturday, foreign currencies maintain their high exchange rates against the Cuban peso (CUP) from previous days, highlighting the lack of trust in the national currency and the strong demand for foreign money.
Saturday, August 23, 2025 – 06:05 AM
Current Exchange Rates: A Closer Look
The exchange rate for the United States dollar (USD) remains at 405 CUP, underscoring its status as the most sought-after currency for those relying on remittances, travel, or purchases in the black market.
The euro (EUR) holds steady at 450 CUP, a level reached in mid-August, solidifying its position as the strongest currency within the informal circuit. This disparity with the dollar is due to both its international value and the limited access Cubans have to obtain it in cash.
Meanwhile, the freely convertible currency (MLC), used in state-run stores, is valued at 195 CUP following a recent drop of five pesos. This highlights the gap between official and informal prices.
Economic Implications for Cuban Residents
The ongoing depreciation of the Cuban peso underscores the lack of confidence in the national economy and the shortage of foreign currency in official channels, where exchange houses remain empty. Under these circumstances, families turn to the informal market to acquire dollars, euros, or MLC at rates that render the average salary on the island as one of the lowest globally, according to specialized sites.
The trajectory of these rates confirms that, despite official efforts to control inflation and stabilize the market, the Cuban peso continues to lose ground against foreign currencies.
Understanding Cuba’s Currency Challenges
Why is the Cuban peso losing value?
The Cuban peso is losing value due to a lack of confidence in the national economy, insufficient foreign currency reserves, and the high demand for foreign currencies like the dollar and euro.
How does the informal currency market affect Cuban residents?
The informal currency market affects Cuban residents by dictating higher exchange rates, making it difficult for individuals to access foreign currencies necessary for remittances, travel, and purchasing goods in state-run stores.
What is the role of the MLC in Cuba’s economy?
The MLC, or freely convertible currency, plays a crucial role in Cuba’s economy as it is used in state-run stores, reflecting the disparity between official exchange rates and those in the informal market.
