The Freely Convertible Currency (MLC) continues to experience volatility within Cuba's informal market. Recently, the MLC's value has once again surged, this time showing an upward trend.
Introduced by the Cuban regime in 2019 as a digital currency tool, the MLC has escalated to 400 CUP, marking a slight recovery after several days of decline.
Designed initially as a mechanism to attract foreign currency, the MLC has become one of the most unpredictable indicators in Cuba's already fragmented currency exchange market.
Despite being introduced as a temporary measure to supply hard-currency stores, the MLC has become entangled in the country's chronic currency shortages, state-imposed restrictions, and growing reliance on the informal market.
Its value lacks a clear backing or transparent official rate against the Cuban peso, leading to its price being set on the streets, where supply and demand swiftly react to any economic or political cues.
The constant fluctuations of the MLC reflect the fragility of the Cuban monetary system and the public's lack of confidence in this financial instrument.
Recent Developments in Currency Exchange Rates
The minor resurgence on March 31 follows a previous day's close of around 396.5 CUP, after a 0.9% drop, confirming a recent downward trend as the month came to an end.
In March, the MLC is poised to finish on a negative note, with an accumulated loss of approximately 8.5 CUP (2.1%) compared to February's closing, making it the worst-performing currency in the informal market during this period.
Throughout the month, the MLC reached peaks of up to 420 CUP in mid-March, with abrupt shifts of up to 20 CUP in a single day, before adjusting downward. Its behavior has been marked by high volatility and wide variations in offers, ranging from 370 to 450 CUP, indicating a market without a clear consensus on its real value.
Unlike the dollar or the euro, which are viewed as safer havens, the MLC is directly influenced by internal government decisions and the availability of products in state-run stores, leading to sudden changes in its exchange rate.
Rumors of policy shifts, shortages, or new restrictions can easily trigger spikes or sudden drops in its value, highlighting a highly sensitive and unstable market.
Stability in Dollar and Euro Exchange Rates
Meanwhile, the dollar and euro rates remain unchanged today.
The U.S. dollar is valued at 515 CUP, and the euro at 580 CUP, according to the daily report from elTOQUE, which tracks currency fluctuations.
Both currencies have maintained a stability streak that has lasted over nine consecutive days, one of the longest of the year.
However, this apparent calm coexists with a deeply fragmented market: recent dollar offers have ranged between 417 and 605 CUP, a discrepancy of up to 188 CUP, revealing highly varied expectations regarding its true value.
The euro, similarly, shows a wide dispersion in the informal market, with recent ranges between 520 and 645 CUP, confirming that despite stability in the reference rate, there remains significant uncertainty among buyers and sellers.
On a monthly basis, both the dollar and euro have shown relatively moderate behavior in March.
The dollar has accumulated a growth of nearly 1% compared to February's close, while the euro has risen by about 1.8%.
Nevertheless, on an annual scale, both currencies have maintained a strong upward trend, with accumulated increases of 160 CUP (45.1%) for the dollar and 220 CUP (61.1%) for the euro.
Exchange Rates as of March 31, 2026 - 7:01 a.m. in Cuba
According to elTOQUE, the exchange rate for the U.S. dollar (USD) to Cuban Peso (CUP) is 515 CUP.
The exchange rate for the euro (EUR) to CUP is 580 CUP.
The exchange rate for the MLC to CUP is 400 CUP.
Currency Conversion for USD to CUP
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.
Currency Conversion for EUR to CUP
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's value so volatile?
The MLC's value is volatile due to its lack of clear backing, reliance on informal market dynamics, and the Cuban government's policy decisions, which make it susceptible to rapid changes based on economic and political signals.
How does the MLC compare to the dollar and euro in Cuba?
Unlike the dollar and euro, which are considered more stable and secure, the MLC is directly influenced by internal factors in Cuba, leading to greater price fluctuations and instability.