In a surprising turn of events, the U.S. dollar has surged past the 500 Cuban pesos (CUP) mark in Cuba's informal market after being stagnant for ten days.
This Friday, the American currency climbed by five pesos, reaching 505 CUP, as reported by the reference rate from elTOQUE.
Breaking a streak of relative calm, this increase highlights the inherent volatility of a market that responds swiftly to both internal and external economic and political signals.
For over a week, the U.S. dollar remained steady at 500 CUP, a figure already indicative of the significant devaluation of the Cuban national currency against the dollar.
Meanwhile, the euro holds its ground at 560 CUP, maintaining its record high within the current cycle of the informal exchange market. The euro remains the priciest foreign currency on the island.
The Freely Convertible Currency (MLC), on the other hand, remains at 410 CUP, a rate reached the previous day amidst the currency's notorious instability.
Recently, the MLC has experienced price fluctuations between 400 and 420 CUP, marking it as the most volatile currency in recent times.
Current Exchange Rates
As of February 20, 2026, at 5:00 a.m. in Cuba, the exchange rates according to elTOQUE are as follows:
- USD to CUP: 505 CUP
- EUR to CUP: 560 CUP
- MLC to CUP: 410 CUP
Informal Market as Economic Indicator
The rates published by elTOQUE have become crucial indicators for assessing the real value of the Cuban peso against foreign currencies. This is particularly significant in a context where the official exchange rate (1 USD = 24 CUP for legal entities and 1 USD = 120 CUP in the state exchange market) remains significantly lower than the prevailing informal market rates.
Additionally, the so-called "floating" exchange rate was introduced as a more flexible mechanism but still falls short of meeting the actual demand for foreign currency among the Cuban population.
The gap between official and informal rates underscores the persistent shortage of foreign currency in the state banking system and the high demand among Cubans for dollars and euros, whether to emigrate, import goods, protect savings, or make private sector purchases.
Today's increase in the dollar's price, albeit moderate, may signal a resurgence in buying pressure after several days of restraint. However, it remains uncertain whether this is the beginning of a new upward trend or merely a temporary adjustment in a market highly sensitive to rumors, cash availability, and economic expectations.
In an environment of sustained inflation, low state salaries, and increasing partial dollarization of the economy, any fluctuation in the informal market directly affects domestic prices and the purchasing power of Cubans.
For now, the dollar shows a slight uptick, while the euro remains at its peak and the MLC continues its recent oscillations. The developments in the coming days will be crucial in determining whether the market embarks on a more pronounced upward path or settles into a new phase of contained fluctuations.
Currency Equivalents
Here are the equivalents of U.S. dollar bills to Cuban pesos based on today's exchange rates:
- 1 USD = 505 CUP
- 5 USD = 2,525 CUP
- 10 USD = 5,050 CUP
- 20 USD = 10,100 CUP
- 50 USD = 25,250 CUP
- 100 USD = 50,500 CUP
And the equivalents for euro bills:
- 1 EUR = 560 CUP
- 5 EUR = 2,800 CUP
- 10 EUR = 5,600 CUP
- 20 EUR = 11,200 CUP
- 50 EUR = 28,000 CUP
- 100 EUR = 56,000 CUP
- 200 EUR = 112,000 CUP
- 500 EUR = 280,000 CUP
Understanding the Cuban Peso and Exchange Rates
Why did the dollar's price increase in Cuba's informal market?
The recent increase in the dollar's price is attributed to renewed buying pressure and the inherent volatility of Cuba's informal market, which responds quickly to economic signals and currency availability.
What is the significance of the informal market rates?
Informal market rates are crucial as they provide a realistic measure of the Cuban peso's value against foreign currencies, in contrast to the official rates which are often disconnected from economic reality.
How does currency fluctuation impact Cuban citizens?
Fluctuations in currency exchange rates directly affect the cost of goods and services, influencing the purchasing power of Cubans amidst a backdrop of inflation and low state wages.