The informal currency market in Cuba has started the week with an upward adjustment, reflecting the ongoing devaluation of the Cuban peso. As of Monday, September 15, 2025, the U.S. dollar (USD) held steady at 420 Cuban pesos (CUP), the euro (EUR) remained at 475 CUP, while the Freely Convertible Currency (MLC) rose to 205 CUP, reinforcing its recent upward trend.
Currency Exchange Rates in Cuba
Monday, September 15, 2025 - 05:00
Exchange rate for the U.S. dollar (USD) to Cuban pesos (CUP): 420 CUP
Exchange rate for the euro (EUR) to Cuban pesos (CUP): 475 CUP
Exchange rate for the MLC to Cuban pesos (CUP): 205 CUP
MLC's Significant Upsurge
The most notable development of the day is the MLC's increase, which surpassed the 200 CUP threshold reached over the weekend, now standing five pesos higher. The six-month trend reveals that the MLC underwent a prolonged period of devaluation between March and late August 2025, dropping from nearly 275 CUP to a low of approximately 190 CUP. The decline was consistent, with sharper decreases from June onwards, indicating a significant drop in market confidence.
However, since the beginning of September, a shift in trend has been evident, with a gradual recovery that has seen the MLC stabilize around the 200 CUP mark. This modest rebound suggests that the currency is regaining some ground after months of losses, amidst heightened pressure on the domestic economy and rising values of other currencies like the dollar and euro.
Stability in Dollar and Euro Rates
Meanwhile, both the dollar and euro have remained at their peak levels since Sunday, following a rapid climb that saw the dollar rise from 411 CUP to 420 CUP, and the euro from 460 to 475 CUP within just a week, with their latest increase of five pesos occurring yesterday. The stability of these currencies at historic highs indicates that the market has temporarily established new reference points.
The Cuban peso continues to lose ground across all fronts. The apparent stability in the dollar and euro is not a sign of recovery but rather the outcome of a market searching for new balances amid economic uncertainty and lack of confidence.
With the MLC's rise, there is potential for other currencies to regain momentum in the coming days, indicating further pressure on Cuban households' economies.
Understanding Cuba's Informal Currency Market Dynamics
Why has the MLC increased beyond 200 CUP?
The MLC's rise above 200 CUP is attributed to a shift in market trends, where it has started to recover after a significant devaluation period, gaining ground due to increased pressure on the domestic economy and rising values of other currencies.
What factors are influencing the stability of the dollar and euro?
The stability of the dollar and euro at their historic highs reflects the market's search for new equilibrium points amidst economic uncertainty and lack of confidence in the Cuban peso.
How does the depreciation of the Cuban peso affect the economy?
The depreciation of the Cuban peso leads to higher costs for imported goods and services, placing additional financial pressure on households and the overall economy.