The informal currency market in Cuba is witnessing a significant spike at the start of the last week of the year, with the Freely Convertible Currency (MLC) reaching an all-time high in sales.
Early Monday morning, the digital currency operated by the Cuban regime increased from 400 to 412 CUP, marking a rise of 12 pesos compared to its previous day's value.
Meanwhile, the U.S. dollar and the euro remain stable, with the American currency holding at 435 CUP and the European currency at 480 CUP, as reported by the independent outlet elTOQUE, which monitors currency fluctuations in Cuba.
The MLC's Rise: A Reflection of Economic Distrust
The surge in the MLC underscores a widespread lack of confidence in the government's monetary policy and the ongoing struggle to access actual foreign currency, despite the introduction of a new official floating rate scheme by the Central Bank of Cuba (BCC) on December 18.
This increase in the digital currency, used in state-run foreign currency stores, occurs amidst a persistent cash shortage, soaring inflation, and the uncertainty surrounding the new exchange system. Although the BCC promoted the floating rate as a reform to mirror real market conditions, it has yet to make a noticeable impact on the general population.
Current Exchange Rates in Cuba
Limited access to foreign currency at banks and CADECA, coupled with the scarcity of dollars and euros, has pushed demand towards the MLC, driving its value to unprecedented levels.
Exchange rates as of December 29, 2025, at 6:45 a.m. in Cuba:
U.S. Dollar (USD) to Cuban Peso (CUP) according to elTOQUE: 435 CUP.
Euro (EUR) to CUP according to elTOQUE: 480 CUP.
MLC to CUP according to elTOQUE: 412 CUP.
Value of USD and EUR in Cuban Pesos
USD to CUP conversions as of December 29:
1 USD = 435 CUP.
5 USD = 2,175 CUP.
10 USD = 4,350 CUP.
20 USD = 8,700 CUP.
50 USD = 21,750 CUP.
EUR to CUP conversions:
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.
Speculation and Economic Instability
Every time Miguel Díaz-Canel's government announces a new economic measure, such as the monetary reform or the floating rate, the informal market responds by anticipating a devaluation of the Cuban peso.
Currency traders, small business owners, and individuals holding foreign currency prefer to hold onto their cash, anticipating price increases. This speculation, along with inflation fears and cash shortages, accelerates the MLC's value more rapidly than other currencies, making it a key indicator of economic distrust.
On social media, official exchange rate publications have sparked waves of criticism and sarcasm.
"After all the criticism of elTOQUE, they end up the same," one user remarked, referencing the independent site that has long been a benchmark for the informal market. Others complained about the disconnect between published rates and actual access to foreign currency in Cuban banks.
Floating Rate: Reform or Illusion?
The three-tier system—1x24 for state operations, 1x120 for companies with foreign income, and a floating rate for citizens and micro, small, and medium-sized enterprises (Mipymes)—has not addressed market distortions. In practice, the rate "floats" on paper but remains static against the backdrop of shortages and a lack of circulating dollars.
Meanwhile, the Cuban peso continues to lose purchasing power. With monthly salaries averaging 4,000 CUP, equivalent to less than 10 dollars at the informal exchange rate, Cubans remain reliant on remittances, digital payments, and currency traders to get by.
Understanding Cuba's Currency Crisis
Why is the MLC rising in value?
The rise in MLC value is due to the lack of confidence in the government's monetary policy, limited access to cash, and inflation fears, pushing people to seek alternative forms of currency.
How does the new floating rate system work?
The floating rate system is designed to reflect real market conditions, with different rates for state operations, external income companies, and citizens, though it hasn't resolved existing market issues.
How are Cubans coping with currency challenges?
Cubans rely on remittances, digital payments, and informal currency exchanges to manage amidst a weakening peso and high inflation.