On December 24th, Cuba's informal currency exchange market opened without any fluctuations, amidst a backdrop of economic tensions and exchange rate calmness marking the end of the year.
The independent observatory, elTOQUE, reports that the US dollar (USD) remains at 440 Cuban pesos (CUP), the euro (EUR) is steady at 480 CUP, and the Freely Convertible Currency (MLC) holds at 350 CUP, its highest point since the recent surge began three days ago.
Informal Exchange Rates in Cuba: Wednesday, December 24, 2025 - 05:02
Exchange rate for USD to CUP: 440 CUP
Exchange rate for EUR to CUP: 480 CUP
Exchange rate for MLC to CUP: 350 CUP
This stability comes on the eve of Christmas, a time when most Cubans face the highest prices of the year amid a severe cash shortage.
Despite the festive season, Cubans greet Christmas with growing uncertainty, keeping an eye on the informal market and the "floating rate" introduced by the Central Bank of Cuba, which has yet to make a noticeable impact on the streets where people seek foreign currency.
Since the regime launched the new exchange scheme on December 18th, promising to "reflect real market conditions," official rates have barely shifted, while the informal value of the Cuban peso continues to dictate the national economy's pace.
Experts suggest that the recent calm should not be mistaken for stability but rather a temporary pause before the next adjustment.
"The market is on edge. No one wants to sell currency right before the year's end when a rise in demand and prices is anticipated," shared an independent economist with CiberCuba.
A Currency Adrift in a Struggling Economy
Even with this temporary halt, the Cuban peso is steadily losing purchasing power against all currencies.
With average monthly salaries equivalent to just $10, most citizens rely on remittances, online sales, or informal bartering to get by.
Meanwhile, the Central Bank of Cuba insists that its floating rate will bring "order and transparency" to the foreign exchange market.
Yet, on the streets, during Christmas Eve, even the dollar remains unchanged, and Cubans continue to wait for the economic miracle that never seems to arrive.
Understanding Cuba's Informal Currency Market
Why is the informal currency market important in Cuba?
The informal currency market in Cuba is crucial because it often reflects the real value of the Cuban peso more accurately than official rates, providing a truer picture of the economy's condition.
What challenges do Cubans face with the current economic situation?
Cubans are grappling with inflation, low wages, and limited access to foreign currency, forcing many to rely on remittances and informal exchanges to meet their needs.
How has the Central Bank of Cuba responded to currency issues?
The Central Bank of Cuba introduced a floating exchange rate with the aim of reflecting real market conditions, but this has yet to produce significant effects on the street-level economy.