The informal currency market in Cuba opens this Tuesday with no changes in exchange rates.
The U.S. dollar remains steady at 530 Cuban pesos, the euro holds at 600 pesos, and the MLC is stable at the 420 pesos mark it reached on Monday.
The dollar has maintained its historic high for several days, a level first reached on April 22 after an increase of four pesos in a single day.
Similarly, the euro surpassed the 600 peso threshold on April 19 and has remained firm since then.
Volatility in MLC Exchange Rates
Among these currencies, the MLC has shown the most volatility throughout the week. On Sunday, it increased by 12 pesos to 412 pesos, and on Monday, it climbed another eight pesos to 420, marking a rise of twenty pesos in just two days.
Disparity Between Official and Street Exchange Rates
The gap between the informal market and the official exchange rates set by the Cuban Central Bank is staggering. The institution officially prices the dollar at 494 pesos and the euro at 578.67 pesos, while street rates exceed these figures by more than 36 and 21 pesos, respectively.
The Cuban Observatory of Currencies and Finances (OMFi) forecasts that the dollar might close April at around 533 pesos, with a potential range reaching up to 590, and the euro at 604 pesos, indicating that the upward trend is likely to continue.
Underlying Causes of Cuban Peso Depreciation
The structural roots of the Cuban peso's depreciation have intensified in 2026. The energy crisis, triggered by disruptions in Venezuelan oil shipments, has collapsed the power grid, adversely affected tourism, and further reduced foreign currency inflows to the island.
Adding to the economic uncertainty was the April issuance of high-denomination bills of 2,000 and 5,000 pesos, a move that failed to address the root causes of the crisis.
Since 2020, the Cuban peso has lost roughly 95% of its value against the dollar in the informal market, plummeting from 42 pesos per dollar to the current 530. In just the past year, the U.S. dollar has surged by 47.8%, rising from 345 pesos in March 2025 to today's 530.
Economist Pavel Vidal warns that "the new Cuban economic program acknowledges the link between inflation, deficit, and monetary issuance, but the focus on cuts without structural reforms for growth makes it challenging to reverse the depreciation spiral in the short term."
Frequently Asked Questions About Cuba's Currency Crisis
Why has the Cuban peso lost so much value?
The Cuban peso's depreciation is primarily due to structural issues such as the energy crisis, reduced tourism, and a lack of foreign currency inflows, exacerbated by recent economic policies.
What are the official exchange rates set by the Cuban Central Bank?
The Cuban Central Bank officially sets the dollar at 494 pesos and the euro at 578.67 pesos, although these rates are significantly lower than those on the street.
How has the MLC behaved in the currency market recently?
The MLC has been highly volatile, increasing by 20 pesos in just two days, reflecting instability in the exchange market.