On Monday, the value of the dollar and euro continued their upward climb in Cuba's informal market, maintaining a relentless rise with no signs of slowing.
The dollar is now being traded at 670 Cuban pesos (CUP), marking an increase of ten pesos from Sunday. Meanwhile, the euro has surged to 760 CUP, climbing between ten and twenty units since the previous day.
Recent Currency Trends in Cuba
This latest increase marks six consecutive days of recovery from a recent low of 605 CUP, which the dollar hit on June 30. In just one week, the dollar has rebounded by 65 CUP.
In contrast, the Convertible Cuban Peso (MLC) has slightly decreased to 491.10 CUP, showing a drop of 1.1 pesos.
Other foreign currencies are also on the rise: the Canadian dollar has increased to 421.85 CUP (+6.04), the Mexican peso to 46.25 CUP (+0.53), and the Zelle to 637.43 CUP (+2.65).
Exchange Rate Insights
As of Monday's rates, 100 dollars are equivalent to 67,000 CUP and 100 euros to approximately 76,000 CUP. These figures highlight the stark contrast between purchasing power in foreign currencies and the wages in pesos that most Cubans earn.
The disparity with the official rate is equally striking: the Central Bank of Cuba has set the dollar at 585 CUP and the euro at 669.53 CUP for July 2026, significantly lower than street prices.
Current exchange rates on 07/06/2026 in Cuba are as follows:
- USD to CUP according to elTOQUE: 670 CUP.
- EUR to CUP according to elTOQUE: 760 CUP.
- MLC to CUP according to elTOQUE: 491.10 CUP.
Ongoing Volatility in the Cuban Economy
The current surge stems from an episode of extreme volatility triggered by a package of 176 economic measures approved by the National Assembly on June 19. This package includes, for the first time since 1959, the authorization of private banking and a digital currency market.
The announcement propelled the dollar to a historic high of 695 CUP and the euro to 800 CUP on June 21, unprecedented levels for both currencies.
After reaching this peak, the currencies sharply corrected until June 30. Since July 1, they have consistently climbed upwards: 610 CUP on July 1, 620 CUP on July 2, between 630 and 640 CUP on July 3, 645 CUP on Saturday, 660 CUP on Sunday, and 670 CUP on Monday.
Analysts from elTOQUE describe this pattern as a recurring phenomenon of exchange rate overreaction in Cuba since 2022: "Faced with a change in expectations, whether due to an economic policy announcement, a rumor, or a confidence crisis, the price of foreign currency skyrockets beyond what is justified by the real economic fundamentals."
When the market grasps the true extent of the change, it corrects, but the correction is never complete: "The new floor is higher than the previous one," they caution.
The so-called "herd effect" amplifies these increases: "People buy foreign currency not because they have rationally assessed the context, but because they see others buying, and the fear of being left behind fuels the rise."
Economist Pedro Monreal González labeled the reform package as a "monster" or "deformed hybrid" on June 26, warning that "the numbers don't add up."
Pavel Vidal from the Observatory of Currencies and Finance was equally skeptical: "It will be challenging to restore trust, certainty, and hope."
In a historical perspective, the magnitude of the crisis is devastating: in 2020, the dollar was valued at 42 CUP in the informal market; by January 2026, it had reached 435 CUP; and this Monday, it surpasses 670 CUP.
Over six years, the Cuban peso has lost more than 95% of its value against the dollar, and elTOQUE warns that "as long as these conditions remain unchanged—real currency shortages, triple-digit inflation, fiscal deficit, and distrust in the Cuban peso—the rate will continue to rise."
FAQs about Currency Exchange in Cuba
Why are the dollar and euro rising in Cuba's informal market?
The rise is attributed to recent economic measures allowing private banking and a digital exchange market, creating volatility and increased demand for foreign currencies.
What is the impact of the rising dollar on the Cuban economy?
The increasing dollar value exacerbates the disparity in purchasing power and highlights the economic challenges faced by Cuban citizens, such as inflation and currency devaluation.
How does the official exchange rate compare to the informal market rate?
The official rates are significantly lower than those in the informal market, with the dollar and euro set at 585 CUP and 669.53 CUP, respectively, compared to the street rates of 670 CUP and 760 CUP.