Cuba shifts toward dollar as peso value crashes
Cuba is moving further toward using the US dollar as the value of its national currency, the peso, continues to collapse on the informal market.
A new report by the Cuban Observatory of Currencies and Finance (OMFi) shows that more businesses are now operating mainly in dollars, marking what it says is a clear policy shift by the government.
The report says the current trend is no longer a reaction to market forces but a deliberate step toward dollarisation.
At the end of April, the average monthly salary in Cuba was 5,839 pesos. At the informal exchange rate of 370 pesos to the dollar, that is worth just $15.78, sharply reducing the purchasing power of most workers.
For pensioners, the situation is even worse, with the minimum pension now worth about $4.13.
The report warns that the growing use of foreign currency, including digital ones like the MLC, is widening the gap between Cubans who have access to dollars and those who do not.
State companies in select industries such as tourism and biotechnology are allowed to keep part of their foreign currency earnings, while others and most ordinary citizens are still stuck with the weakening peso.
Meanwhile, the Cuban government reported a budget surplus in March 2025, a rare occurrence in recent years.
However, the surplus came after cutting spending in areas like social services and raising prices on basic goods such as fuel and electricity, moves that may hurt low-income households.
