The U.S. dollar has set a new all-time high against the Cuban peso in the nation's informal exchange markets, reaching 546 CUP on Saturday—an increase of one peso from the previous day, as reported by the independent media outlet elTOQUE.
This daily analysis also reveals a significant drop in the Freely Convertible Currency (MLC), which has fallen to 400 CUP, a decrease of 30 pesos from the day before. Meanwhile, the euro remains stable at 625 CUP.
Exchange Rates and Market Trends
As of Saturday, May 16, 2026, the exchange rate for the U.S. dollar stands at 546 CUP, the euro at 625 CUP, and the MLC at 400 CUP. The dollar's surge highlights an upward trend that has persisted throughout May. Starting the month at 535 CUP, the dollar has risen by 11 pesos, while the euro has climbed 20 pesos from its initial 605 CUP.
Throughout the week, the dollar increased from 542 CUP on Monday, May 11, to 545 CUP on Tuesday, May 12, maintaining this level until it climbed to 546 CUP by Saturday morning.
Record Levels and Economic Implications
The euro has solidified its position at a record 625 CUP, while the MLC displayed greater volatility, peaking at 440 CUP on Tuesday, May 12, before gradually declining to 400 CUP.
This latest dollar peak is part of an unprecedented upward spiral that has accelerated since February, when it first surpassed 500 CUP on February 10. The dollar has continually reached new highs: 530 CUP on April 22, 536 CUP on May 4, 543 CUP on May 10, 545 CUP on May 12, and now 546 CUP.
The disparity between the informal exchange rate and the official rate set by the Central Bank of Cuba, which is 502 CUP per dollar, now stands at 44 CUP, underscoring a profound lack of confidence in the official exchange system.
Long-Term Economic Decline
The Cuban Currency and Finance Observatory (OMFi) notes that the average annual depreciation of the Cuban peso from January to April 2026 was 45%, more than double the rate in 2025, which was 22%.
Since 2020, the peso has lost approximately 95% of its value against the dollar in the informal market, plummeting from 42 CUP per dollar to the current 546 CUP. This decline reflects the structural collapse of an economy battered by 67 years of communist dictatorship, persistent currency shortages, an energy crisis, and the continuous decline in national production.
Understanding Cuba's Currency Crisis
Why is the U.S. dollar rising so sharply in Cuba?
The sharp rise in the dollar's value in Cuba is due to a lack of confidence in the official currency exchange system, coupled with chronic shortages of foreign currency, an energy crisis, and ongoing economic decline under communist rule.
What impact does the informal exchange rate have on Cuba's economy?
The informal exchange rate creates significant discrepancies with the official rate, leading to increased economic instability and a lack of trust in official financial institutions, further exacerbating the economic crisis.
How has the Cuban peso depreciated over the years?
Since 2020, the Cuban peso has devalued by approximately 95% in the informal market, dropping from 42 CUP per dollar to 546 CUP, highlighting the country's severe economic difficulties and loss of currency value.