On this Sunday morning, Cuba's informal currency market presents a mixed picture: both the US dollar and the euro hold their ground from the previous day, while the Freely Convertible Currency (MLC) experiences a slight dip after hitting its highest point in weeks.
The independent outlet elTOQUE reported at 6:05 a.m. that the exchange rates remained steady for the dollar and euro:
Informal Exchange Rates in Cuba
Sunday, December 14, 2025 - 06:05 AM
USD to Cuban Peso (CUP): 440 CUP
EUR to Cuban Peso (CUP): 485 CUP
MLC to Cuban Peso (CUP): 295 CUP
The minor decline of five pesos in the MLC value halts its upward climb, which saw it reach a peak of 300 CUP on Saturday, close to its historic high of 310 CUP recorded in May 2024.
This adjustment seems to be a natural market correction rather than a shift in trend after several days of continuous increase.
Volatility and Demand: MLC's Role in the Economy
Over the past month, the MLC has been the most sought-after and volatile currency in Cuba. Its swift appreciation was fueled by the increasing need for electronic balance to purchase essentials such as food and medicine in foreign currency stores, the only outlets with minimal stock maintained by the regime.
However, recent speculations about a potential official reference rate and state-imposed restrictions on currency usage and access for different economic actors might have spurred an excessive short-term revaluation, now corrected by the market itself.
Stability and Concerns in the USD and EUR Exchange Rates
The US dollar remains unchanged at 440 CUP, reflecting an apparent balance due to the scarcity of physical bills and traders' caution amidst heightened state repression against the informal currency trade.
Since the beginning of December, the dollar has fluctuated within a narrow range of 435 to 445 CUP, indicating a fragile stability driven more by fear than economic confidence.
Meanwhile, the euro maintains its rate at 485 CUP, unchanged since Saturday, confirming its current stability after losing some value in late November.
Informal Market as a Barometer
Amidst ongoing inflation, power outages, and widespread shortages, the informal market continues to serve as the most reliable indicator of the Cuban peso's real value. Currently, it reflects a pause in the currency escalation, yet shows no signs of recovery for the national currency.
Understanding Cuba's Currency Dynamics
Why is the MLC in high demand in Cuba?
The MLC is highly demanded due to its use in purchasing essential goods in foreign currency stores, which are among the few places with reliable stock in Cuba.
What factors contribute to the stability of the US dollar in Cuba?
The stability of the US dollar in Cuba is influenced by the scarcity of physical dollars and the cautious approach of traders in response to increased government crackdowns on the informal currency market.