This past Saturday, the euro soared to an unprecedented 610 Cuban pesos (CUP) in the unofficial currency market, marking a historic peak as reported by elTOQUE. This surge underscores an upward trend showing no signs of slowing down.
With a five-peso increase from Friday's rate of 605 CUP, this marks the second consecutive record high for the European currency within just 48 hours. The week has been characterized by new highs for both the dollar and the euro in Cuba's informal market.
Meanwhile, the dollar remains steady at 535 CUP, maintaining the historic peak it reached last Wednesday after two days of consecutive increases. This figure surpasses the maximum forecast by Cuba's Observatory of Currency and Finance (OMFi), which had projected a ceiling of 533 CUP for the end of April.
The MLC (freely convertible currency) is trading today at 412.5 CUP, showing a slight upward trend from Thursday’s 410 CUP, although it has been on a downward trajectory compared to previous weeks.
Factors Fueling the Euro's Surge
Over the past two weeks, the euro's climb has been particularly striking. On April 19, it breached the psychological threshold of 600 CUP for the first time, holding firm at that level for ten days. Then, last Tuesday, it rose an additional five pesos to reach 605 CUP, surpassing OMFi's prediction of 604 CUP for the end of April.
The dollar also saw a significant increase, setting a new price record last Thursday after a total rise of 20 pesos throughout April. This represents a 3.9% increase from the 515 CUP level seen at the end of March.
The gap between the informal rates and the official ones from the Central Bank of Cuba is widening. While today's informal market rates sit at 535 CUP per dollar and 610 CUP per euro, the official rates as of April 28 were 496 CUP and 581.56 CUP, respectively.
Underlying Causes of the Peso's Decline
The persistent depreciation of the Cuban peso is driven by structural issues that the regime has failed to address. An energy crisis, exacerbated by halted Venezuelan crude shipments and the suspension of Mexican oil supplies to Cuba since January 2026, has compounded the situation. Additionally, a decline in tourism, a shortage of hard currency in the banking system, and excessive money printing tied to a fiscal deficit have all contributed to the peso's downfall.
Historically, the Cuban peso has lost approximately 95% of its value against the dollar since 2020, when it was exchanged at 42 CUP. In just the past year, the dollar has surged by 47.8% in Cuba's unofficial currency exchange market, rising from 345 CUP to the current 535 CUP.
Understanding the Currency Crisis in Cuba
What factors are causing the Cuban peso to depreciate?
The Cuban peso is depreciating due to several structural problems, including an energy crisis from disrupted oil supplies, decreased tourism, a hard currency shortage in banks, and excessive monetary emission due to a fiscal deficit.
How much has the Cuban peso lost in value since 2020?
Since 2020, the Cuban peso has lost about 95% of its value against the dollar, dropping from 42 CUP to the current exchange rate of 535 CUP in the unofficial market.
Why is the euro reaching new highs in Cuba's informal market?
The euro is reaching new highs due to an ongoing upward trend in Cuba's informal market, driven by economic instability and market dynamics that have not been addressed by the Cuban government.