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Cuban Peso Plummets to Record Low Amidst Crisis
12 Feb
Summary
- The Cuban peso reached an all-time low of 500 to the U.S. dollar.
- U.S. restrictions on oil imports are choking Cuba's already struggling economy.
- Essential goods like eggs now cost thousands of pesos, impacting residents.
The Cuban peso reached an unprecedented low of 500 against the U.S. dollar on the informal market as of Wednesday, February 11, 2026. This sharp decline underscores the deepening economic crisis gripping the island, exacerbated by United States restrictions on oil imports. The informal exchange rate, which is more widely used than official rates, serves as a key indicator of the Cuban economy's health.
Decades of U.S. sanctions and recent events have severely impacted Cuba's economy, leading to increased dollarization. The peso's plunge means the average state salary, around 7,000 pesos, is now equivalent to just about $14 on the informal market. A carton of eggs, for example, costs 3,000 pesos, placing immense strain on residents.
Recent geopolitical events, including U.S. actions in Venezuela and threats of tariffs on fuel shipments, have further destabilized Cuba's access to vital resources. This has led to a reduction in gasoline sales, flight cancellations due to a lack of oil, and significant disruptions to public transport, banking, and cultural events, with longer and more frequent blackouts becoming endemic.
