The Freely Convertible Currency (MLC) has once again taken center stage as the only notable change in Cuba's informal exchange market recently.
At 6:00 a.m. local time on Thursday, the MLC has further declined, dropping from 415 to 410 Cuban Pesos (CUP) on the black market.
Meanwhile, both the dollar and the euro have maintained their stability, as indicated by the informal market rate index (TRMi) published daily by the independent outlet elTOQUE.
This suggests that the informal market for Cuba's two primary foreign currencies has not yet reacted to the report released by Axios on Wednesday. The report highlighted alleged discussions between Raúl Guillermo Rodríguez Castro, known as "El Cangrejo," and U.S. Secretary of State Marco Rubio.
Today marks the tenth consecutive day that the U.S. dollar is valued at its all-time high of 500 CUP.
The euro remains unchanged as well, valued at 560 CUP as of February 19th.
Current Exchange Rates as of February 19, 2026 - 6:00 a.m. in Cuba
According to elTOQUE:
- USD to CUP exchange rate: 500 CUP.
- EUR to CUP exchange rate: 560 CUP.
- MLC to CUP exchange rate: 410 CUP.
Persistent Volatility in MLC's Informal Exchange Rate
The Freely Convertible Currency (MLC) has been experiencing significant instability in the Cuban informal market for weeks, fluctuating between 400 and 420 CUP.
This volatility underscores the rising uncertainty surrounding a financial tool designed to attract foreign currency and supply state-run stores, yet has long faced a climate of distrust and systemic scarcity.
In practice, the MLC acts as a parallel currency within Cuba's already complex partial dollarization. Its informal rate is driven more by supply and demand than any official benchmark, with sharp increases followed by moderate drops, indicative of a tense market sensitive to rumors about product availability, currency store openings or closures, and economic policy changes.
Currently, the range of 400 to 420 CUP reflects erratic behavior: some days pushing the upper limit as demand for foreign currency for specific purchases rises, and others falling slightly due to liquidity shortages in pesos or a growing preference for physical dollars.
This prolonged instability confirms that the MLC is not seen as a secure asset but rather as a transactional tool subject to the uncertainty of the state's commercial system.
The Steady Path of the Dollar and Euro in the Informal Market
Unlike the MLC, the U.S. dollar has demonstrated a more pronounced steadiness in the Cuban informal market recently, holding firm at its peak value of 500 CUP.
After months of continuous increases, the American currency appears to have stabilized at this level, serving as the primary reference for larger transactions, family savings, and private sector pricing.
The euro has also maintained stability in recent days, remaining at a higher selling price compared to the dollar.
Although less circulated, the European currency continues to be valued as a store of wealth, especially among those receiving remittances from European countries.
This concurrent stability of the dollar and the euro contrasts with the MLC's volatility and underscores the informal market's tendency to favor strong physical currencies over internal financial instruments whose backing is directly tied to state decisions.
Currency Conversion: USD to CUP
Based on exchange rates from February 19:
1 USD = 500 CUP.
5 USD = 2,500 CUP.
10 USD = 5,000 CUP.
20 USD = 10,000 CUP.
50 USD = 25,000 CUP.
100 USD = 50,000 CUP.
Currency Conversion: EUR to CUP
1 EUR = 560 CUP.
5 EUR = 2,800 CUP.
10 EUR = 5,600 CUP.
20 EUR = 11,200 CUP.
50 EUR = 28,000 CUP.
100 EUR = 56,000 CUP.
200 EUR = 112,000 CUP.
500 EUR = 280,000 CUP.
Understanding Cuba's Informal Currency Market
Why is the MLC experiencing volatility in Cuba?
The MLC is subject to volatility due to factors such as supply and demand dynamics, rumors about product availability, and changes in economic policy. Its informal status means it's more influenced by market fluctuations than official benchmarks.
How has the U.S. dollar maintained stability in Cuba's informal market?
The U.S. dollar has remained stable in Cuba's informal market due to its role as a primary reference for transactions, savings, and pricing, as well as its physical presence being preferred over financial instruments like the MLC.
What factors contribute to the euro's stability in Cuba?
The euro's stability is supported by its valuation as a store of wealth, especially for those receiving remittances from Europe, and its lesser circulation compared to the U.S. dollar, which maintains its demand.