For the third consecutive day, the Freely Convertible Currency (MLC)—a creation of the Cuban government that many predict is doomed—has unexpectedly increased in value on Cuba's informal market. This virtual currency, once traded at 250 CUP, is now being exchanged at 255 CUP, marking a five-peso rise since Sunday.
This surge is particularly surprising given the recent restrictions on spaces where Cubans can transact using these types of cards. Meanwhile, the regime is progressing towards a more dollarized economy, favoring cash and cards such as VISA, MasterCard, and the Clásica card, the latter operated by the government.
On the other hand, the U.S. dollar and the euro have maintained stable prices in Cuba's informal currency trade, as reported by elToque, which monitors buy-sell ads on social media. The U.S. dollar remains steady at 340 CUP, while the euro holds at 345 CUP. Notably, the dollar has shown remarkable stability since January 11th. As of February 17, 2025, 9:53 a.m. in Cuba, the exchange rates recorded by elToque are as follows: USD to CUP at 340, EUR to CUP at 345, and MLC to CUP at 255.
Is the MLC's Fate Sealed?
A clear indicator of the MLC's declining relevance is the reopening of the Infanta and Santa Marta Market in Havana last week, now offering a wide range of products but with a significant change: it no longer accepts MLC for payments. Previously, transactions in MLC were allowed, but now only VISA, MasterCard, MIR, and prepaid cards from BANDEC, AIS, Viajero, and Clásica—which offers a 5% discount on purchases—are accepted.
This shift has caused discontent as MLC cards, still reloaded from abroad, are now invalid in this venue, reinforcing perceptions of the Cuban government's arbitrary economic policies. It's worth noting that in January, the supermarket 3ra y 70 in Playa opened, accessible only with U.S. dollars. Alongside these venues, the regime has sanctioned over a dozen wholesale and retail stores in foreign currencies, eight of which are linked to MINCIN's business system.
Understanding Cuba's Informal Currency Market
What is the current exchange rate for the MLC in Cuba?
As of February 17, 2025, the MLC is being traded at 255 CUP in the informal market.
Why is the MLC losing its significance?
The MLC's significance is dwindling due to policy changes that limit its use and favor other currencies like the U.S. dollar and cards such as VISA and MasterCard.
How has the informal market in Cuba responded to currency changes?
The informal market has seen stable exchange rates for the U.S. dollar and euro, while the MLC has recently increased in value despite its limited usage.