The euro has surged once again in Cuba's informal currency market, reaching 580 Cuban pesos (CUP) this Sunday, solidifying its status as the most expensive currency in the island's parallel market.
In contrast, the U.S. dollar remains at 510 CUP, while the Freely Convertible Currency (MLC) is valued at 400 CUP, according to the daily monitoring data from the independent outlet, elTOQUE.
Informal Exchange Rates in Cuba
Sunday, March 8, 2026 - 07:10 AM
Dollar (USD) to Cuban pesos (CUP): 510 CUP
Euro (EUR) to Cuban pesos (CUP): 580 CUP
MLC to Cuban pesos (CUP): 400 CUP
Over the past year, the euro's trajectory vividly illustrates the significant depreciation of the Cuban peso. Approximately twelve months ago, the European currency was trading around 350 CUP. However, it has since embarked on a largely upward path, reflecting the ongoing decline in the national currency's value.
In the spring and summer of 2025, the euro began a steady climb, initially surpassing the 400 pesos mark and then nearing 450 CUP. The upward trend persisted in the following months, driven by high demand for foreign currency and a limited supply of hard currency within the state banking system.
By the end of 2025, one of the most volatile periods occurred, with the euro almost reaching 540 CUP, only to experience a sharp fall back to around 450 CUP shortly after. Nevertheless, this correction was temporary, as the European currency regained ground in the ensuing weeks.
Since the beginning of 2026, the euro has resumed its upward trend, exceeding the levels reached at the end of last year. In recent weeks, the exchange rate has continued to climb, now standing at 580 CUP, the highest level recorded to date.
When comparing the current value to that of twelve months ago, the results are striking: the euro has increased by more than 200 pesos, indicating a nearly 65% depreciation of the Cuban peso against the European currency during this period.
This trend highlights the relentless pressure on the national currency amid an environment characterized by inflation, low state wages, and an increasing partial dollarization of the economy. For many Cubans, acquiring foreign currency has become a means to safeguard the value of their earnings or to fund migration projects and private sector activities.
Meanwhile, the informal market continues to serve as the true benchmark for exchange rates in Cuba, far surpassing the official rates set by the state financial system.
Understanding the Euro's Impact on Cuba's Economy
Why has the euro increased so significantly in Cuba?
The euro's significant increase in value in Cuba is primarily due to high demand for foreign currency and the limited availability of hard currency in the state banking system.
What factors have contributed to the peso's depreciation?
The depreciation of the peso is influenced by factors such as inflation, low state salaries, and a growing partial dollarization of the economy.
How does the informal market impact exchange rates in Cuba?
The informal market serves as the true indicator for exchange rates in Cuba, often reflecting more accurate market conditions than the official state-set rates.