The black market for foreign currency in Cuba remained stable this Friday, August 15, holding onto the historic highs it reached earlier in the week. As reported by elTOQUE, the U.S. dollar was trading at 400 Cuban pesos (CUP) in the early morning, the euro at 450 CUP, and the Freely Convertible Currency (MLC) at 200 CUP.
After several days of fluctuating rates, the stability observed on August 15 confirms the establishment of prices that, while appreciated by those needing predictability, also highlight the ongoing devaluation of the Cuban peso. The MLC, designed as a currency control mechanism within the country, continues to draw criticism. Analyst Efraín González described it in Cubanet as "the aborted offspring of the late CUC" and "a voucher useful only for purchasing very little in certain state-run stores controlled by the military."
Meanwhile, the Cuban government remains silent about the "transformations" in the official exchange market promised by Prime Minister Manuel Marrero for the second half of the year. A month after his statements, no concrete measures have been implemented, and expectations are fading amidst official silence.
Exchange Rates as of 08/15/2025 — 07:55 am
USD: 1 = 400 CUP | 100 = 40,000 CUP
EUR: 1 = 450 CUP | 100 = 45,000 CUP
MLC: 1 = 200 CUP
With inflation and shortages eroding purchasing power, the population continues to rely on the informal market to obtain foreign currency, as the Cuban peso steadily loses ground against the dollar and the euro. Presently, remittances from emigrants serve as the primary financial support for millions of households across the country.
Understanding Cuba's Currency Challenges
Why is the Cuban peso devaluing?
The Cuban peso is devaluing due to a combination of economic mismanagement, high inflation, and a lack of foreign investment. The informal market reflects these issues as it often offers a more accurate representation of the currency's value than the official exchange rates.
What is the role of remittances in Cuba's economy?
Remittances from emigrants are crucial for the Cuban economy, providing essential financial support to many families. They represent a significant source of foreign currency and help alleviate some of the economic hardships faced by the population.
How does the Freely Convertible Currency (MLC) impact Cubans?
The MLC, while intended to manage currency exchange in Cuba, has been criticized for limiting purchase options to a few state-run stores. It is seen as a restrictive system that does not effectively meet the needs of the Cuban people.