In Cuba's informal currency market, this Thursday morning brings a significant development: the value of the Freely Convertible Currency (MLC) has taken another sharp dive.
Over the past few hours, the MLC has fallen from 400 to 385 CUP, marking another episode of instability for the digital monetary creation enforced by the Cuban regime since 2019.
This is the lowest value the currency has reached since March 9, with a decline more pronounced than most in recent days.
Continued Decline and Market Instability
Throughout March, the MLC has experienced a 4.9% drop compared to its closing rate in February. According to elTOQUE, this represents "the worst monthly performance among the three main currencies by far."
"March's trajectory for the MLC tells a clear story: sharp increases of up to 20 pesos followed by equally swift declines, failing to stabilize at any consistent level. As the month draws to a close, the currency is 20 CUP below its starting point," reports the digital outlet.
The offers ranged from 350 to 450 CUP (a 100 CUP difference between the lowest and highest prices), reflecting "once again, the lack of consensus on its real value in a market where genuine demand remains scarce."
Stability Amidst Currency Fluctuations
What about the dollar and the euro? Today, both currencies remain unchanged. The U.S. dollar holds steady at 515 CUP, and the euro at 580 CUP, as per the daily report from elTOQUE, which tracks currency fluctuations.
The U.S. dollar has been stable at 515 CUP for five consecutive days, marking the "second longest period of immobilization this month after the historic 13-day stretch earlier in March."
So far this month, the dollar has seen a growth of only 1% compared to its February closing rate.
In recent hours, the range of offers for the dollar was unusually wide: between 418 and 600 CUP, a 182 CUP difference between the lowest and highest prices for the U.S. currency.
The cited outlet indicates that this represents "an extreme dispersion that contrasts with the calm median and suggests very divergent expectations about where the dollar is headed in the final stretch of the month."
The euro also remained at 580 CUP for the fifth consecutive day, without change.
In March, it has increased by 10 CUP (1.8%) compared to its February closing, and over the year, it has risen by 225 CUP (63.4%).
elTOQUE notes that "five days without movement for the euro is also a rarity," and that "the market seems to have found a temporary balance around this level."
The euro's offer range fluctuated between 560 and 600 CUP (a 40 CUP difference), slightly broader than in previous days but still within the usual for this currency.
MLC's Volatility in a Market Lacking Clear Rules
The Freely Convertible Currency (MLC), introduced by the regime as a mechanism to capture foreign exchange, has evolved into one of the most volatile indicators in Cuba's already fragmented exchange market.
Initially presented as a temporary solution for stocking hard currency stores, it has become entangled in the structural shortage of foreign exchange, state restrictions, and growing reliance on the informal market.
Its value, lacking clear backing or an official exchange rate compared to the Cuban peso, is effectively set on the street, where supply and demand quickly respond to any economic or political signals.
The constant fluctuations of the MLC highlight the fragility of Cuba's monetary system and the population's distrust of this instrument.
Unlike the dollar or the euro, seen as safer havens, the MLC is directly influenced by the government's internal decisions and the availability of products in state-run stores, leading to sharp movements in its rate.
Rumors about changes in sales policies, shortages, or new restrictions are often enough to spike its value or cause sudden crashes, revealing a highly sensitive and unstable market.
Today's Exchange Rates - March 27, 2026
Exchange rate for the U.S. dollar (USD) to Cuban Peso (CUP) according to elTOQUE: 515 CUP.
Exchange rate for the euro (EUR) to Cuban Peso (CUP) according to elTOQUE: 580 CUP.
Exchange rate for the MLC to Cuban Peso (CUP) according to elTOQUE: 385 CUP.
The rates published by elTOQUE have become one of the main indicators for measuring the real value of the Cuban peso against foreign currencies, in a context where the official exchange rate remains detached from market reality.
Foreign currencies are primarily used for emigration, importing goods, safeguarding savings against inflation, or making purchases in the growing private sector, maintaining high pressure on the informal market.
In a scenario of sustained inflation, low state salaries, and increasing partial dollarization of the economy, the behavior of the informal currency market continues to have a direct impact on internal prices and the purchasing power of Cubans.
USD to CUP Bill Equivalency
1 USD = 515 CUP.
2 USD = 1,030 CUP.
5 USD = 2,575 CUP.
10 USD = 5,150 CUP.
20 USD = 10,300 CUP.
50 USD = 25,750 CUP.
100 USD = 51,500 CUP.
EUR to CUP Bill Equivalency
1 EUR = 580 CUP.
5 EUR = 2,900 CUP.
10 EUR = 5,800 CUP.
20 EUR = 11,600 CUP.
50 EUR = 29,000 CUP.
100 EUR = 58,000 CUP.
200 EUR = 116,000 CUP.
500 EUR = 290,000 CUP.
Understanding Cuba's Currency Market Dynamics
Why is the MLC experiencing such volatility?
The MLC's volatility stems from its lack of clear backing and the absence of an official exchange rate, making its value subject to the rapidly changing conditions of the informal market.
How does the informal currency market impact Cubans?
The informal currency market directly affects internal prices and the purchasing power of Cubans, especially in a context of sustained inflation and low state salaries.
What keeps the dollar and euro stable in Cuba?
The relative stability of the dollar and euro in Cuba is due to their perception as safer havens compared to the MLC, aligning more closely with international exchange rates.