This Monday, the informal currency market in Cuba witnessed a slight yet notable drop in the exchange rates for both the euro and the MLC (freely convertible currency), contrasting with Sunday's figures. According to independent monitoring by elTOQUE, the euro currently stands at 385 CUP, marking a decrease of 2.5 pesos from the 387.5 CUP recorded the previous day. Meanwhile, the MLC fell to 260 CUP, down by 5 pesos in just 24 hours.
Informal Exchange Rates in Cuba
Monday, May 5, 2025 - 07:00
- Dollar (USD) to Cuban pesos (CUP): 370 CUP
- Euro (EUR) to Cuban pesos (CUP): 385 CUP
- MLC to Cuban pesos (CUP): 260 CUP
The charts indicate a sustained downward trend in the valuation of the MLC on Cuba's informal market, observed both in the short and medium term. Over the past week, the MLC rate dropped from 265 CUP on April 28 to 260 CUP by May 5, suggesting either a reduction in demand or an increase in the availability of this currency within the informal circuit.
Looking at the last three months, the data reveals a more pronounced trend: after peaking at around 285 CUP at the end of February, the MLC has gradually declined with minor fluctuations, stabilizing below 265 CUP in April and continuing this trajectory into May.
Factors Influencing Currency TrendsThis ongoing decline reflects a progressive weakening of the MLC, potentially linked to factors such as diminished confidence in its utility for purchasing in state-run stores, which are increasingly transitioning to operate in euros and dollars. The euro's price adjustment this Monday interrupts its recent upward streak, which had seen the European currency appreciating against the increasingly strained Cuban peso.
Although the decline is modest, it could signal a temporary halt in the pressure on informal demand for euros, amidst growing economic instability. Conversely, the U.S. dollar remains stable at 370 CUP, unchanged since Saturday. This stability reinforces its role as a key reference in an environment marked by high inflation and persistent erosion of purchasing power.
The more significant decline in the MLC compared to the euro suggests potentially waning demand for this currency in the informal market, where uncertainty about its availability and acceptance in the state store network continues to loom large.
The fluctuations in these rates underscore the pulse of the domestic economy, increasingly reliant on foreign currencies. Without structural reforms, the informal market will remain a crucial outlet for millions of Cubans seeking access to stronger currencies amid the ongoing crisis.
FAQs on Cuba's Informal Currency Exchange
What is causing the decline in MLC rates?
The decline in MLC rates may be attributed to reduced demand or increased availability of the currency in the informal market, as well as a shift in consumer confidence towards purchases in euros and dollars.
Why is the U.S. dollar exchange rate stable?
The U.S. dollar exchange rate remains stable at 370 CUP due to its role as a key reference point in Cuba's high-inflation environment, maintaining its value amidst economic challenges.
How does the euro's decline impact Cuba's economy?
The euro's decline may indicate a temporary pause in demand, reflecting broader economic instability and affecting Cuba's access to foreign currency.