This Saturday, Cuba's informal currency market saw a significant drop, with the dollar now trading at 663 Cuban pesos (CUP), the euro at 753 CUP, and the MLC at 419 CUP, as recorded in the early hours of the morning.
Compared to Friday's figures, all three currencies have decreased. The dollar fell by seven pesos from 670 CUP, the euro dropped five pesos from 758 CUP, and the MLC saw the steepest decline, plummeting 29 pesos from Friday's 448 CUP.
Recent Exchange Rate Fluctuations
Exchange rates for Saturday, July 11, 2026, are as follows: the dollar at 663 CUP, the euro at 753 CUP, and the MLC at 419 CUP. Just two days ago, the dollar was stable at 680 CUP, the euro was around 760 CUP, and the MLC was at 490 CUP, highlighting the rapid decline over the past 48 hours.
Over the past month, the market has experienced extreme volatility. The dollar reached an all-time high of 695 CUP on June 21, shortly after the National Assembly approved a package of 176 economic measures during an extraordinary session. Instead of stabilizing the market, this announcement coincided with a sharp rise in the dollar's price in the informal market.
Historical Perspective on Currency Devaluation
After peaking, the dollar quickly corrected to 605 CUP at the end of June, the lowest point for the period, before gradually recovering: 610 CUP on July 1, 645 on July 4, 670 on July 6, and 680 from July 7 to 9. However, this Saturday's drop interrupts that upward trend.
The euro followed a similar trajectory, reaching a historic record of 800 CUP on June 21, then falling to around 700 CUP by the end of the month, and stabilizing between 758-760 CUP in early July before retreating again this Saturday.
The MLC behaved differently, fluctuating between 488 and 507 CUP during June, stabilizing around 490 CUP in the first week of July, and now experiencing a sharp decline to 419 CUP, reaching levels similar to the beginning of the analyzed period.
Impact of Economic Reforms
This situation contrasts sharply with the Central Bank's official rates set at 592.00 CUP per dollar and 676.15 CUP per euro for July 2026, which are significantly lower than the informal market prices, illustrating the deep currency distortion in the island.
The 176 measures approved on June 19—the most ambitious since the Special Period—include, for the first time since 1959, the authorization of private banks, private exchange houses, and a digital currency market with currency auctions. However, the public reaction has been skeptical: on social media, Cubans responded with phrases like "they want to save themselves" and "does anyone believe them?" Reports of protests and banging of pots and pans were noted in Santiago de Cuba, Santa Clara, and Havana.
Independent economists Mauricio de Miranda and Miguel Alejandro Hayes argue that the measures aim not at economic development but at "the political survival of the regime and a new distribution of power within Castroism," without altering GAESA's structure.
Historically, the Cuban peso has lost over 95% of its value against the dollar in six years: from 42 CUP in 2020 to this Saturday's 663 CUP. According to independent economists, "unless conditions change—real currency shortages, triple-digit inflation, fiscal deficit, and lack of trust in the Cuban peso—the rate will eventually rise again."
Understanding Cuba's Currency Challenges
What caused the recent drop in Cuba's informal currency market?
The decline is attributed to extreme volatility and economic uncertainty following the announcement of 176 economic measures by the National Assembly, which did not stabilize the market as intended.
How are the official and informal exchange rates different in Cuba?
The official exchange rates set by the Central Bank are significantly lower than those in the informal market, highlighting a major disparity and currency distortion within the country.
What are the implications of the new economic measures for Cuba's future?
While the measures aim to introduce private banking and currency exchange options, skepticism remains as they are perceived to focus more on political survival rather than genuine economic development.