Cuba's Informal Market Sees Dollar and Euro Surge Amid Structural Shortage

The informal currency exchange market in Cuba closed on Thursday, October 1, 2026, with both the US dollar and euro experiencing significant rises compared to the previous day. The U.S. dollar wrapped up Thursday at an average rate of 770 Cuban pesos (CUP), marking a 10.5 peso increase from the prior day's value of 760 CUP.

The euro closed at an average of 870 CUP, rising by 5 pesos from the previous session's rate of 865 CUP. The MLC, or Moneda Libremente Convertible, showed upward movement but its value is considered indicative due to limited data.

The dollar and euro have been experiencing sustained pressure on the Cuban peso as inflation remains high and state salaries remain low. The official exchange rate set by the Central Bank of Cuba for October 1st stands at 689 CUP per dollar and 781 CUP per euro, significantly lower than the prevailing rates in the informal currency market.

The disparity between official and informal rates is evident, with discrepancies highlighting the gap between formal economic policies and actual market demand. The introduction of Segment III as a more flexible exchange mechanism has not bridged this gap, with its official rates still lagging behind those in the parallel market.