The Central Bank of Cuba (BCC) announced on Thursday, December 18, 2025, the updated official exchange rates to be applied in the currency exchange offices, known as CADECA, under the newly termed "transformed exchange market."
For the first time, a "floating" rate is introduced, which, according to the regime, will be adjusted daily based on supply and demand dynamics.
Nevertheless, when compared to the informal market rates reported by the independent outlet El Toque, it becomes evident that the financial reality for ordinary Cubans remains distant from these official figures.
Official CADECA Rates (December 18, 2025)
U.S. Dollar (USD): purchase at 401.80 CUP, sale at 418.20 CUP
Euro (EUR): purchase at 471.79 CUP, sale at 491.05 CUP
Bank equivalent USD (MLC): not listed, but presumed to be within the same range as the dollar.
These numbers signify the first "floating rate" announced by the BCC within Segment III of the revised exchange framework. This adjustment shows that the official dollar rate is approaching 400 CUP, a significant leap from the previous 120 CUP, yet still falling short of the actual street market value.
Comparison with the Informal Market
According to the independent monitor El Toque, which tracks private exchange transactions using a real-time methodology averaging currency trade ads on social media, the informal rates for December 18 are:
Dollar (USD): 440 CUP
Euro (EUR): 480 CUP
MLC: 300 CUP
This indicates that the street value of the dollar is nearly 40 pesos higher than in CADECA, with the euro being just 10 pesos more.
This gap, which the government aims to narrow with the new "floating rate," highlights how state-run markets continue to lag behind the economic reality of the nation.
Understanding the Disparity
The difference between official and informal rates stems from a structural issue: the shortage of foreign currency available to the state and the widespread lack of confidence in the Cuban peso.
In other words, the regime lacks sufficient dollars to supply the official market, leading to restricted sales and a valuation that fails to reflect true supply and demand.
Meanwhile, Cubans receiving remittances or those working with foreign currency prefer the informal market, where prices are higher and transactions occur instantly.
This dynamic ensures that the black market continues to set the pace. Despite the Central Bank's talk of "controlled floating," in reality, there's no true floating—only manipulation.
As several economists, including Mauricio de Miranda Parrondo, explain, the regime's multiple exchange rates merely segment the market and create distortions.
The general populace, with no access to privileged segments (1x24 and 1x120), ultimately bears the cost of these discrepancies.
The Illusion of a Floating Rate
The BCC claimed that Segment III's rate "will be adjusted daily according to the real economic conditions."
However, as long as the state remains the sole controller of foreign currency supply and operations are confined to a few CADECA branches, this "floating" rate remains purely symbolic.
In other words, the dollar floats, but within a closed tank.
The announcement of a 401.80 CUP buying rate might seem like a step towards aligning with the real market, yet it fails to address the core issue: ordinary Cubans still lack free access to dollars or euros.
Therefore, the predictable outcome is that the informal market will continue to serve as the true economic barometer for Cuba.
In Conclusion
The Central Bank's attempt to demonstrate that the state "listens to the market" with this new rate only reveals the disconnect between official and real prices, illustrating a system out of touch with everyday life.
This measure does not eliminate the informal market; it simply acknowledges it as the real reference point.
As long as the economy remains under centralized control without transparent exchange rate unification, Cubans will keep calculating their finances based on El Toque's rate, not CADECA's.
Frequently Asked Questions About Cuba's Exchange Rates
What is the new floating exchange rate by the BCC?
The new floating rate, as introduced by the BCC, is meant to adjust daily according to market dynamics, reflecting supply and demand. However, it remains largely symbolic due to the state's control over foreign currency supply.
How does the informal exchange rate compare to CADECA's rates?
As of December 18, 2025, the informal market rates are significantly higher: the USD is valued at 440 CUP compared to CADECA's 401.80 CUP, and the euro at 480 CUP versus 471.79 CUP in CADECA.