As the clock strikes 8:00 PM Cuban local time, the informal currency market in Cuba concludes this Friday, August 28, 2026, with noticeable gains for both the U.S. dollar and the euro. The American currency has climbed to an average value of 673 Cuban pesos (CUP), while the euro has risen to 758 pesos. The MLC, though lacking comprehensive data and offering only a tentative value, stands around 470 pesos. This upward trend in the two major currencies highlights the increasing pressure in the black market over recent days.
Closing the day, the U.S. dollar is valued at 673 CUP, marking an increase of 2.5 pesos from the previous day when it ended at 670 pesos. Over the past week, the dollar has gained 10 pesos from 663 CUP, reflecting a 1.5% rise. Comparing with the last 30 days, its average value remains steady at 673 pesos, although this comparison might indicate methodological adjustments rather than pure market movement. In the past month, the dollar has fluctuated between a low of 663 and a high of 674 pesos in the informal market. It continues to set the pace in an environment marked by a structural shortage of foreign currency.
Euro's Performance in the Informal Market
At the end of Friday, the euro is priced at 758 CUP, reflecting a 1.5 pesos increase from the previous session's 756 pesos. Throughout the week, this European currency has risen by 9.5 pesos from the 748 CUP it recorded seven days ago, marking a 1.3% increase. Over the past month, the euro has decreased by 27.5 pesos from the 785 CUP recorded then, although this variation should be cautiously interpreted as it might partly result from methodological index adjustments. The euro's monthly range in the informal market has spanned from 746 to 788 pesos, maintaining its lead over the dollar by 85 pesos and solidifying its dominant presence in Cuba's parallel market.
MLC and Its Limited Role
The MLC closes around an average value of 470 CUP, albeit this figure is only indicative due to limited closing data for this currency. Compared to the previous day, it rose by 1 peso from 469 pesos. Over the past week, the MLC has surged 20 pesos from 450 CUP, marking a 4.4% rise. Compared to 30 days ago, it slightly declines by 2.5 pesos from 472 CUP, a change that might also be influenced by methodological adjustments. Without physical existence, its use is confined to state-run stores that accept it, restricting its circulation compared to cash currencies.
Exchange Rate Overview: The USD to CUP rate stands at 673 CUP. The EUR to CUP rate is 758 CUP. The MLC to CUP rate, though indicative, is 470 CUP. The official exchange rate from the Central Bank of Cuba (Segment III) remains at 634 CUP per dollar and 739 CUP per euro, significantly lower than the practical rates in the informal currency market.
Although Segment III was introduced as a more flexible exchange mechanism, its official rate remains far from the informal market rates and fails to meet the real currency demand of the population. The gap between the official and informal rates this Friday stands at 39 pesos for the dollar and 19 pesos for the euro.
Economic Strain and Currency Impact
In a scenario of sustained inflation, low state salaries, and increasing partial dollarization of the economy, every fluctuation in the informal market directly impacts domestic prices and the purchasing power of Cubans. The concurrent rise of the dollar and euro as the day closes reinforces the upward trend observed throughout the week, further eroding the purchasing power of the Cuban peso.
The CiberCuba Exchange Rate is an index of Cuba's informal market, created from the automated analysis of thousands of currency trade postings in Telegram and Facebook groups. This calculation filters out atypical offers and spam messages, weighting each transaction by its age and consolidating a representative value that is updated multiple times daily.
Dollar to Cuban Peso conversion rates for Friday, August 28, 2026: 1 USD = 673 CUP, 5 USD = 3,365 CUP, 10 USD = 6,730 CUP, 20 USD = 13,460 CUP, 50 USD = 33,650 CUP, 100 USD = 67,300 CUP. Euro to Cuban Peso conversion rates: 1 EUR = 758 CUP, 5 EUR = 3,790 CUP, 10 EUR = 7,580 CUP, 20 EUR = 15,160 CUP, 50 EUR = 37,900 CUP, 100 EUR = 75,800 CUP, 200 EUR = 151,600 CUP.
Understanding Cuba's Currency Dynamics
Why is there a difference between official and informal exchange rates in Cuba?
The discrepancy arises because the official rates are set by the Central Bank of Cuba, which doesn't reflect the actual market demand and supply for foreign currencies. This leads to higher rates in the informal market where real-world transactions take place.
How does the rise of the dollar and euro affect Cubans?
The increase in these currencies reduces the purchasing power of the Cuban peso, leading to higher prices for goods and services, and further diminishes the real income of Cuban citizens.
What is the significance of the MLC in Cuba's economy?
MLC is primarily used in state-run stores and lacks physical currency form, limiting its circulation compared to foreign cash. It offers a way for the government to capture foreign currency but restricts access for the general population.