Cuban Peso Plummets​ as ​US Dollar Reaches Record High on Informal Market

HAVANA (AP) — The U.S. dollar has continued its surge in ⁢CubaS informal market, hitting 370 Cuban pesos ⁣(CUP) this Saturday. This according to independent monitoring.

the five-peso increase compared to the previous week underscores the sustained pressure on the national currency.

As of Saturday, may‍ 3, 2025:

• dollar ⁤(USD) to CUP: 370 CUP
• Euro (EUR) to CUP: 385 CUP
• Freely ⁤Convertible Currency ⁤(MLC) ‍to CUP: 265 CUP

The dollar began the week at 365 CUP, remaining relatively stable⁤ untill Wednesday. A ⁤steady climb then led to Saturday’s record high.

This⁢ increase coincides​ with the start of May, a period typically marked by increased ⁤activity in informal currency exchanges ⁣due⁤ to remittances and the population’s need for supplies.

Euro Sees Slight Increase

The euro has also ⁢experienced a slight increase recently, holding at 385 CUP on Saturday. The MLC remains stable at 265 CUP, ​showing less fluctuation compared to ​other foreign ​currencies.

This trend ⁢reflects ongoing imbalances in Cuba’s exchange market,where ⁢currency demand continues⁣ to ‍outstrip supply.

Despite official efforts to curb inflation and ‌stabilize the economy, Cubans‍ continue to rely on the informal market to access hard currency, essential ⁣for purchasing basic goods ​and dollarized services.

The ongoing devaluation of the Cuban⁢ peso reflects a ​lack of confidence in the government’s economic policies and highlights the disconnect between the official exchange market and the daily realities faced by​ millions of citizens.⁤ The dollar’s continued rise is⁢ expected to further signal economic deterioration on the island.

Cuba’s Economic⁣ Crisis: A Deeper Look

The dollar’s recent surge reflects a national economy in structural crisis.Economists warn that cuba ⁣is experiencing stagflation,characterized⁤ by persistent inflation,stagnant⁢ economic growth,and⁢ declining employment.

The‌ sustained rise in the ⁤informal ⁤exchange rate is partly due to the Cuban peso’s loss of value, which has substantially reduced its ⁢purchasing⁤ power. ‍This fuels an⁢ inflationary spiral, as the prices of most basic goods are tied to currency values.

Together, the country ⁢faces significant production challenges. Key sectors such as agriculture, industry, and ⁤tourism are ‌operating at reduced levels. Shortages of supplies, low‍ investment, and⁣ market distortions hinder economic recovery.

Visible and invisible unemployment, including‌ underemployment and emigration, ⁣further worsen the situation. The rise in‌ informal work and mass emigration reduces ‍the active labor force and undermines recovery efforts.

These factors suggest ⁢that the Cuban ⁣economy is trapped ⁤in ‌a stagflation cycle,rendering customary economic ⁣policies,such as controlled ⁣devaluation or ‌subsidies,ineffective. The dollar’s rise is a key indicator of an economy ‍struggling to ​find solutions.