The Freely Convertible Currency (MLC) in Cuba is facing a downturn, seemingly doomed to vanish despite attempts for revival. This week has seen a significant instability for the MLC. After regaining the five pesos lost on Tuesday in Cuba's informal currency market, it has now dropped again to 215 CUP. Meanwhile, both the U.S. dollar and the euro have remained unchanged for the second consecutive day, with the American currency holding at 395 CUP and the European at 445 CUP, each marking record highs in their selling prices.
Rising Median Value for Dollar and Euro Sales
The median selling values in the informal market indicate an increase for both the dollar and the euro. The U.S. dollar is sold at 400 CUP, while the euro stands at 444.59 CUP. The median value, as published by theTOQUE, represents the middle price among various offers reported by users and market observers in Cuba's informal economy. Unlike averages, the median avoids distortions caused by extreme values and more accurately reflects the true nature of the most common transactions.
Exchange Rates on August 7, 2025 - 7:29 a.m. in Cuba
According to theTOQUE, the exchange rate for the dollar (USD) to Cuban Peso (CUP) is 395 CUP, while the euro (EUR) to CUP is 445 CUP. The MLC stands at 215 CUP.
Here are the equivalences of U.S. Dollar (USD) bills to Cuban Peso (CUP) based on today's rates:
- 1 USD = 395 CUP
- 5 USD = 1,975 CUP
- 10 USD = 3,950 CUP
- 20 USD = 7,900 CUP
- 50 USD = 19,750 CUP
- 100 USD = 39,500 CUP
And for Euro (EUR) to Cuban Peso (CUP):
- 1 EUR = 445 CUP
- 5 EUR = 2,225 CUP
- 10 EUR = 4,450 CUP
- 20 EUR = 8,900 CUP
- 50 EUR = 22,250 CUP
- 100 EUR = 44,500 CUP
- 200 EUR = 89,000 CUP
- 500 EUR = 222,500 CUP
Government Plans for Economic Adjustment
In mid-July, Cuban Prime Minister Manuel Marrero Cruz announced a new "management, control, and allocation mechanism for currency" set to be implemented in the second half of 2025. This is part of the so-called "Government Program to Correct Distortions and Revitalize the Economy." The proposed framework plans to overhaul the official currency market, consolidate financing schemes, and promise a more efficient redistribution of foreign currency generated by state enterprises.
In the meantime, the informal market continues to lead the way: the Cuban Peso is declining in value, and remittances from emigrants remain the primary support for millions of households across the nation.
Understanding Cuba's Currency Market Dynamics
Why is the MLC experiencing instability in Cuba?
The MLC is facing instability due to ongoing economic challenges and uncertainty in Cuba, which have affected its perceived value and demand.
What do the current exchange rates indicate about Cuba's economy?
The current high exchange rates for the dollar and euro suggest a weakening Cuban Peso and highlight the dependency on foreign currency, reflecting broader economic struggles.
How will the new government program affect the currency market?
The new government program aims to stabilize the currency market by implementing management reforms and improving currency allocation, though its effectiveness remains to be seen.