On December 18th, Cuba's black market for foreign currency starts its second consecutive day with stability, as the selling rates for the three main reference currencies remain unchanged.
As of early Thursday, the exchange rate for the U.S. dollar is steady at 440 CUP, while the euro is valued at 480 CUP per unit. This information is provided by the independent outlet elTOQUE, which closely monitors the fluctuations in currency prices in Cuba.
The Freely Convertible Currency (MLC) also shows no change, maintaining its position at 300 CUP, a level it reached earlier on Tuesday.
Exchange Rates on December 18, 2025 - 6:48 a.m. in Cuba:
- USD to CUP according to elTOQUE: 440 CUP.
- EUR to CUP according to elTOQUE: 480 CUP.
- MLC to CUP according to elTOQUE: 300 CUP.
This period of stability in Cuba's informal currency market coincides with the activation of a new official floating exchange rate.
Implementation of the Floating Rate: Three Segments with a Single Goal
Starting Thursday, Cuba introduces a fresh exchange rate framework. The Central Bank has rolled out a floating rate for both citizens and private entities as part of a gradual reform aimed at curbing informality and reorganizing currency flows.
The new system is categorized into three segments:
- Segment I (1x24 CUP): Essential state operations.
- Segment II (1x120 CUP): Enterprises with external income.
- Segment III (floating rate): For individuals and small businesses, updated daily by the BCC.
The stated objective is to move towards future unification without triggering a monetary collapse.
Initial Rates: A Closer Look at elTOQUE's Insights
On Thursday, the Central Bank and CADECA released the initial floating segment rates:
- Dollar: 410 CUP (official) | 440 CUP (informal).
- Euro: 481.42 CUP (official) | 480 CUP (informal).
At CADECA, public sales set the dollar at 418 CUP and the euro at 491.05 CUP, surpassing even the informal market's values. This alignment indicates that the new scheme acknowledges rather than competes with the parallel market as the actual benchmark.
Implications for Citizens and Businesses
Individuals will have the opportunity to sell foreign currency at the new official rate and purchase up to 100 USD through digital appointments. However, the supply remains limited, as only legally obtained funds (such as remittances and exports) will be available for sale.
Self-employed workers and small businesses can obtain foreign currency from fiscal accounts, up to 50% of their quarterly gross income, eliminating the need to rely on the informal market.
Reform or Reluctance?
The introduction of the floating rate effectively validates the informal market, which has long dictated the true value of the Cuban peso. While the redesign may streamline certain flows, it does not address the prevailing lack of confidence in the state financial system. Without transparency, liquidity, and structural reforms, this measure risks being just another temporary fix in a deteriorating model.
USD to CUP Conversion Rates for December 18:
- 1 USD = 440 CUP.
- 5 USD = 2,200 CUP.
- 10 USD = 4,400 CUP.
- 20 USD = 8,800 CUP.
- 50 USD = 22,000 CUP.
- 100 USD = 44,000 CUP.
EUR to CUP Conversion Rates:
- 1 EUR = 480 CUP.
- 5 EUR = 2,400 CUP.
- 10 EUR = 4,800 CUP.
- 20 EUR = 9,600 CUP.
- 50 EUR = 24,000 CUP.
- 100 EUR = 48,000 CUP.
- 200 EUR = 96,000 CUP.
- 500 EUR = 240,000 CUP.
Understanding Cuba's Currency Exchange Changes
What is the new exchange rate system introduced in Cuba?
Cuba has introduced a new floating exchange rate system with three segments aimed at reducing informality and reorganizing currency flows.
How does the new floating rate affect businesses?
The new rate allows self-employed workers and small businesses to acquire foreign currency from fiscal accounts up to 50% of their quarterly gross income, reducing reliance on the informal market.
Why is the floating rate seen as a validation of the informal market?
The floating rate is viewed as a validation of the informal market because it acknowledges the true value of the Cuban peso, which has historically been set by the informal market.