The Freely Convertible Currency (MLC) remains a resilient presence in Cuba's informal market, with its value unexpectedly rising by five pesos recently, moving from 255 to 260 in street transactions. This creation of the Cuban government, which many anticipate will vanish due to the inevitable shift towards dollarization, has surprisingly increased for the fourth time in a matter of days.
The uptick in value is particularly striking given the recent restrictions on the venues where Cubans can use this type of card for transactions. The revival of the MLC remains a puzzling phenomenon, one yet to be addressed by the independent outlet elToque, which tracks currency fluctuations in Cuba. Meanwhile, the regime is progressing towards an open dollarization of its sales, accepting cash or cards such as VISA, MasterCard, and the government-operated Classic card.
As for the dollar and euro, their exchange rates have been stable. The U.S. currency continues to be valued at 340 CUP, while the European currency is set at 345 CUP. Remarkably, the dollar has maintained this stability since January 11. Current exchange rates as of February 18, 2025, at 8:53 a.m. in Cuba are as follows: USD to CUP according to elToque is 340 CUP, EUR to CUP is 345 CUP, and MLC to CUP is 260 CUP.
Will the Freely Convertible Currency Disappear in Cuba?
Despite a 15 CUC surge in less than a week, skepticism remains about the demise of the Freely Convertible Currency, as the Cuban regime recently reopened the Infanta and Santa Marta Market in Havana. This market now offers a wide array of products but has made a significant change in its payment system: it no longer accepts MLC. Previously permitting MLC transactions, the market now only accepts cards like VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Classic, the latter offering a 5% discount on purchases.
This shift has caused frustration, as MLC cards, often reloaded from abroad, are now invalid in this setting, reinforcing the perception of arbitrary economic policies by the Cuban government. It's also noteworthy that in January, the 3ra y 70 supermarket in Playa was inaugurated, accessible only with dollars.
Besides these locations, the regime has sanctioned over a dozen wholesale and retail stores to operate in foreign currencies, eight of which are linked to the MINCIN business system.
Understanding the Economic Shift in Cuba
What is the current value of the MLC in Cuba?
The current value of the MLC in the Cuban black market is 260 CUP.
Why has the MLC increased in value despite limitations?
The increase in MLC value is surprising given the recent restrictions on its use. This rise might be driven by speculation or other market dynamics not yet fully understood.
How are dollar and euro exchange rates behaving in Cuba?
The exchange rates for the dollar and euro have remained stable, with the dollar at 340 CUP and the euro at 345 CUP.