Informal Exchange Rate aka the Black Market in Cuba

If you’ve started researching money in Cuba, you’ve probably seen references to the “black market rate,” the “street rate,” or the “informal rate.”  It sounds dramatic. It isn’t.  This is normal life here, for Cubans and for visitors, and it has been for some years now.  What it really reflects is something much simpler: the official exchange rate set by the Cuban government does not always reflect real-world supply and demand. As a result, an informal exchange market exists alongside the official one.  Understanding this difference is one of the most important factors in planning your budget for Cuba, because the rate you use will dramatically affect how expensive the country feels.  I’ll cover the exchange rates in Cuba, how they work, and how to understand the informal exchange rate in Cuba.

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“Black Market” – “an illegal traffic or trade in officially controlled or scarce commodities.”

In the vast majority of countries, the term “Black Market” is where drugs or other illegal items are traded.  Under the counter, around the corner, out of sight.  In Cuba its very different.  The black market started perhaps in 1959, after the Revolution, when Fidel Castro’s government nationalized many of the businesses and industries.  Private enterprises decreased significantly, incomes dived.  Cubans did many things to survive.  As the government increased an authoritarian overreach in the 1960’s and 70’s, the black market increased.  And then really took off in Cuba in the 1990’s after the collapse of the Soviet Union led to Cuba’s “Special Period”.  Shortages of all sorts of goods occurred: clothing, food, electronics, information, and cash. Trading, swapping, and exchanging on the “black market” just became a way of surviving life in Cuba.

When we think of the phrase “black market,” it feels a little dangerous.  And that, more than anything, is why the exchange of currency outside of accredited Cuban government-approved sources is usually termed the “informal market”, or “on the street”.

Exchange Rates in Cuba

Cuba is like nowhere else you’ve ever traveled to.  There are a huge number of “quirks” and oddities about visiting Cuba, and the money, payment, and currency are a big part of it.  You don’t actually need to understand the quirks of Cuba’s currency and payment to come to Cuba, but if you’re traveling independently, then it makes sense to try, because it will cost you less to visit and you’ll get more out of your visit.

So let’s start.

The Cuban currency is the Peso (CUP).  There’s more about the currency and the peso in my guide here.

There are FOUR different exchange rates for currency in Cuba.  Three of them are official (yes, that’s right, there are three different exchange rates in Cuba in 2026), and one of them is informal.  And by informal, I mean it’s the “street rate” or the “black market rate”.

The Official Exchange Rates in Cuba

Cuba’s official exchange rate is set by the government.  That’s normal in every country. What’s different in Cuba is that there are THREE (3) different official exchange rates.  Each applies to different situations.

1. The fixed rate of US$1 to CUP24 (this is for centralized state allocations for goods and services considered essential, such as fuel, medicine, electricity, public transportation, and necessities). It’s pretty much irrelevant to you as a visitor.
2. The fixed rate of US$1 to CUP120 (this is for certain entities with the capacity to generate foreign currency, particularly in the tourism sector). This is relevant to you if you take cash out of an ATM or pay in CUP for a government sector service on a card.  My guide to ATMS in Cuba is here.
3. The new floating rate, which was launched on 18 December 2025 at US$1 to CUP410.  This is for individuals and non-state management entities. An update to this rate is published every day by Cuba’s Central Bank (BCC).  You can find it here.  This is relevant to you if you change either cash or use a card at an exchange (Cadeca).

The floating rate is now very close to the informal rate that you’ll find in Cuba.  You can track, watch, and check the informal exchange rate in Cuba on El Tocque.

The Informal Exchange Rate in Cuba

There has been a black market, aka informal exchange rate, in Cuba for a long time now – we’re talking decades.  El Tocque has been tracking this rate since 1 January 2021.  Just because you see this rate online doesn’t mean you’ll get it by exchanging your foreign currency informally, but you’ll have an idea of what type of exchange you’re likely to get.

All about the Informal Exchange Rate in Cuba

Let’s start with the legality of this exchange. 

It is technically illegal to exchange foreign currency on the informal market.  And there have been recent (2025) cases where investigations have shown the state taking action.  If you read the article and supporting information, the government is going after huge amounts.  They’re most likely not interested in the few hundred dollars you’ll be exchanging for your vacation (or visit, if you’re American) to Cuba. 

I have heard of no action taken against tourists to Cuba for exchanging currency on the informal market. 

Then there’s the safety issue.  Wandering around with large sums of cash, exchanging it with random people, never sounded like a good idea anywhere.

The chances are you’ll be spending most of your time in Cuba with a lot of cash.  (read my guide here on how much you’ll need), And you’ll bring it with you in foreign currency (read which currency to bring here), so it’s almost a moot point about whether it’s safe or not.  (Generally, it is.  Cuba is generally a VERY safe country to visit).

Then there’s the scam issue.  99% of visitors to Cuba will look like a visitor to Cuba.  Being approached on the street by someone offering to exchange cash is a red flag in any country.  The scam might be a bad rate, or it might be dodgy notes.  It could be anything.  You wouldn’t do it at home, don’t it here.  Ask your hotel or your casa particular owner where to exchange foreign currency.  They have a stake in keeping you (and your cash) safe and scam-free.  The random on the street doesn’t.

Why does an Informal Exchange Rate exist in Cuba?

The informal exchange rate exists because of market forces.  There is limited access to foreign currency inside the formal banking system, a high demand for hard currency (USD, EUR, CAD), and inflationary pressure on the Cuban Peso (CUP).

So when demand for foreign currency exceeds what is available through official channels, an alternative market develops.  That’s the informal market.  This is not unique to Cuba. Many countries with currency controls or shortages develop informal exchange systems.  But here in Cuba, this system has become normalised in daily life.

How is the Informal Exchange Rate set in Cuba?

Well, it’s not so much “set” as “calculated by mediums and averages or calculated from the median of the numbers posted in currency buy and sell ads on social media groups and classifieds sites.”  You can read here how El Tocque calculates it.

What people are buying and selling Cuban Pesos (and the foreign currency that buys it) is influenced by the supply and demand for foreign currency, seasonal tourism patterns, and the rates fluctuate throughout the day, and throughout the country.  You’ll find someone tracking the different rates on Tripadvisor, in Facebook groups, but the most widely referenced is El Toque, which aggregates reported exchange activity and gives a daily indication of informal rates.

This gives both you and Cubans a benchmark for what is considered fair at any given time.  There are ALWAYS small regional variations.

How does Informal Exchange actually happen in Cuba?

In practice, informal exchange usually happens in referral-based ways – and this includes casa particular owners exchanging currency for guests, word-of-mouth introductions, bar tenders and taxi drivers offering exchange.

As I mentioned before, a random approach on the street offering “best rate” should be treated with caution.

When changing money, always:

• Confirm the rate clearly before handing over money
• Count both what you give and what you receive
• Know what the notes you are receiving should look like.  The Cuban Central Bank has a guide here.
• Avoid exchanging large amounts in public spaces

Is the Informal Exchange Legal in Cuba?

Officially, the government sets the exchange rate and expects currency transactions to occur within the formal banking system – i.e., at a Cadeca or in a bank.  In practice, informal exchange is widespread and openly discussed.

You should understand that they are operating outside formal banking structures when using informal exchange, and decide your own comfort level. 

Tourists to Cuba are incredibly important to Cuba, especially now.  Anyone targeting tourists is dealt with quickly and firmly.  Minor scams are the worst you are likely to experience.

Is Informal Exchange Dangerous in Cuba?

In most cases, no, changing money on the black market is not dangerous in Cuba, if you handle it sensibly.  Cuba is generally a safe country, and informal exchange is commonplace among locals.

The risks that you’re likely to face are more practical than dangerous, like

• Receiving the wrong amount
• Being quoted an unrealistic rate
• Confusion over currency

As always, if it doesn’t feel right, then it’s probably not, so if you feel uncomfortable, don’t proceed.

Guides to Currency, ATMs, budgeting, and paying for things in Cuba

I’ve got a lot of content here on Cuba’s Best about traveling to Cuba.  And there’s a lot of content about currency, paying for things, and how cash in Cuba works. Here’s the specific detail about that.

• An overview of Cuban Currency in 2026
• Using ATMs in Cuba
• What Currency to Take to Cuba in 2026
• How to send money to Cuba in 2026
• How much money to take to Cuba in 2026
• A brief recent history of the Cuban Currency
• What to do if you run out of cash in Cuba
• Cash v’s Cards in Cuba
• Understanding the Informal Currency Exchange in Cuba.

Why does the Informal Rate matters so much for travelers in Cuba?

The informal rate isn’t quite as important as it was before December 2025, when the Government changed the exchange rates for changing cash and making exchanges at Cadecas using a card, but it’s still important because it directly affects your budget.

When you use the official rate (via ATM or card), Cuba is more expensive than if you exchange at the cash or informal rate.  When you exchange at either the cash or informal rate and pay in CUP, your foreign currency often stretches significantly further.

This is why two travelers can visit at the same time and report very different daily costs.

How to Approach Informal Exchange in Cuba Practically

If you decide to use informal exchange, then you’ll join hundreds and thousands of visitors to Cuba who do this during their stay.  Make sure you

• Know the current indicative rate before negotiating
• Exchange smaller amounts first
• Exchange with people that you have a trusted relationship with – start by asking your casa particular owner and go from there.
• Avoid last-minute exchanges under pressure

Final Words on the Informal, aka Black Market Currency Rate in Cuba

Cuba technically has one currency, the Cuban Peso (CUP).  In practice, there are multiple exchange realities – the informal and the formal.  The informal rate in Cuba exists because market forces demand it. It is widely used, widely understood, and deeply embedded in daily life in Cuba.  You don’t have to participate in it, but understanding it means that you can make a better decision about how you visit and pay for your trip to Cuba.

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