On Sunday, the US dollar soared to 660 Cuban pesos (CUP) in Cuba’s informal currency market, while the euro climbed to 760 CUP. Meanwhile, the MLC remained steady at 440 CUP, as reported in the 6:00 a.m. monitoring on June 14.
This marks a new record high for both currencies, with the dollar increasing by five CUP from Saturday's peak of 655 CUP, and the euro advancing ten CUP from the previous day's rate of 750 CUP.
Currency Exchange Dynamics
The informal exchange rate on Sunday, June 14, 2026, was as follows: USD to CUP at 660, EUR to CUP at 760, and MLC to CUP at 440. Notably, the widening gap between the euro and the dollar is striking: the difference now stands at 100 CUP compared to Saturday's 95 CUP, indicating a stronger demand surge for euros.
A Steep Climb Over Two Weeks
Looking at the weekly trend underscores this climb's magnitude. The dollar started June at 585 CUP, crossed the 600 CUP threshold on June 3, and continued its upward journey: 610 CUP on June 5, 625 on June 8, 635 on June 10, 640 on June 11, 650 on June 12, 655 on June 13, and finally, 660 on this Sunday.
In just 14 days, the dollar surged by 75 CUP, translating to a more than 12% increase over two weeks.
The euro followed a similar, albeit faster, trajectory: from 690 CUP on June 5 to 760 CUP this Sunday, a jump of 70 CUP in just nine days.
Contrasting Stability of MLC
In contrast, the MLC has remained stable at 440 CUP for several consecutive days, illustrating a different demand dynamic in the informal market, unlike the volatility seen in the dollar and euro.
Underlying Economic Challenges
The speed of this depreciation exceeds even the most pessimistic forecasts. The Currency and Finance Observatory (OMFi) from elTOQUE had anticipated a maximum rate of 650 CUP per dollar by month's end, a figure surpassed by June 12 with more than two weeks to go.
Structural issues are fueling this dynamic. A significant drop in tourism, the island's main currency source, saw a 55.8% year-over-year decline from January to April 2026, with only 328,608 visitors.
Moreover, a severe energy crisis, characterized by prolonged blackouts and fuel shortages that stall production, the issuance of unsupported 2,000 and 5,000 peso notes, and an annual inflation rate of 14.73% exacerbate the situation.
The gap between the official rate set by the Central Bank of Cuba and the informal rate remains vast, reinforcing market distortions and eroding trust in the Cuban peso.
As June reaches its midpoint, without effective measures from the regime to halt the peso's decline, analysts warn that the dollar might reach 700 CUP before the month’s end.
Frequently Asked Questions on Cuba's Currency Market
Why is the dollar rising rapidly in Cuba?
The rapid rise of the dollar in Cuba is driven by a combination of structural economic issues, including a steep decline in tourism and a severe energy crisis, along with inflation and currency supply concerns.
What contributes to the euro's increased demand in Cuba?
The increased demand for the euro in Cuba is due to its perceived stability compared to the US dollar and the Cuban peso, coupled with the widening exchange rate gap that suggests a proportional growth in euro demand.
How does the informal currency market affect Cuba's economy?
The informal currency market in Cuba impacts the economy by creating a parallel exchange rate that undermines the official rate, contributing to market distortions and a lack of confidence in the Cuban peso.