Once again, the Freely Convertible Currency (MLC) is plummeting in Cuba's informal market, dropping below the 200 CUP threshold this Thursday. As of 7:00 a.m. on August 21, the MLC, a financial construct devised by the Cuban government in 2019, has fallen to 195 CUP, according to the daily report by elTOQUE, which tracks currency fluctuations on the island.
This decline marks a five-peso drop from its previous rate, reinforcing a crisis that seems to lead inevitably towards the currency's extinction. Meanwhile, the U.S. dollar and the euro have maintained their previous values: the dollar remains at 405 CUP, a price it reached yesterday, and the euro holds steady at 450 CUP, a rate it has sustained for several days.
The MLC's Downward Spiral: A Foretold Demise
Between July 24 and August 3, the MLC held steady at 220 CUP. However, it has since continued a downward trajectory, suggesting a possible exit from the market. More and more businesses that previously accepted the MLC are now quietly closing or requiring cash payments in U.S. dollars instead, though no official phase-out has been announced by the authorities.
Initially, the MLC was heavily promoted by the government. Now, as its usage dwindles, there has been no public explanation or indication of what will happen to citizens' MLC accounts. "Officially, it's still valid, but without offers in that currency, it will inevitably die. The other major issue is how the USD deposited years ago is no longer the same as the classic USD on the card... and if you go to the bank to withdraw, 'there's none available.' What purpose does a bank serve if it can't guarantee access to personal savings?" a social media user recently questioned.
So far, no official body has issued any statements regarding changes in the acceptance of the MLC or the future of MLC accounts. Public perception is growing that its end is only a matter of time, despite public denials from the authorities.
Back in 2020, when the government introduced MLC stores for food and hygiene products, it promised these currencies would supply stores that operate in Cuban pesos. However, this promise was never fulfilled, and now Cuban peso shops are scarce and nearly empty.
Currency Exchange Rates as of August 21, 2025, 8:00 a.m. in Cuba
According to elTOQUE, the exchange rate for the U.S. dollar to CUP is 405 CUP. The euro stands at 450 CUP. The MLC has dropped to 200 CUP. Here are the conversions for U.S. dollars to Cuban pesos based on today's rates:
- 1 USD = 405 CUP
- 5 USD = 2,025 CUP
- 10 USD = 4,050 CUP
- 20 USD = 8,100 CUP
- 50 USD = 20,250 CUP
- 100 USD = 40,500 CUP
For euros to Cuban pesos:
- 1 EUR = 450 CUP
- 5 EUR = 2,250 CUP
- 10 EUR = 4,500 CUP
- 20 EUR = 9,000 CUP
- 50 EUR = 22,500 CUP
- 100 EUR = 45,000 CUP
- 200 EUR = 90,000 CUP
- 500 EUR = 225,000 CUP
In July, Manuel Marrero announced forthcoming changes to Cuba's official exchange market, expected to take place in the second half of the year. However, no developments have been observed thus far.
Understanding the Decline of Cuba's Freely Convertible Currency
What is the current value of the MLC in Cuba's informal market?
As of August 21, 2025, the MLC is valued at 195 CUP in the informal market.
How have the U.S. dollar and euro been performing in comparison?
The U.S. dollar is holding steady at 405 CUP, while the euro remains at 450 CUP, showing stability compared to the MLC's decline.
Why are businesses moving away from accepting MLC?
Many businesses are switching to U.S. dollars in cash as the MLC's value continues to decrease and its future becomes uncertain.