The Cuban informal market unveiled an unexpected twist this Wednesday morning. Rather than a resurgence of the U.S. dollar's value, it was the Freely Convertible Currency (MLC) that experienced another surge. According to reports from elToque, the MLC climbed an additional five pesos, now standing at 265 CUP. This virtual currency, used by the regime in select stores and thought by some to be on the verge of extinction, has increased by 20 pesos since February 14th. This is an unusual development, especially given that foreign currency rates have largely remained stable since the end of last year. Meanwhile, the dollar and euro have shown no change in value.
The U.S. dollar continues to be valued at 340 CUP, while the euro holds steady at 345 CUP. Notably, the dollar has maintained remarkable stability since January 11th. Here are the exchange rates as of February 19, 2025, 8:11 a.m. in Cuba: The dollar to CUP rate is 340; the euro to CUP rate is 345; and the MLC to CUP rate is 265, all according to elToque.
Is the Freely Convertible Currency on the Verge of Disappearing in Cuba?
The surprising rise of the MLC is puzzling, particularly as opportunities for Cubans to transact with this card have been increasingly restricted in recent weeks. The revival of the MLC remains a mystery, with no commentary yet from the independent outlet elToque, which closely monitors currency fluctuations in Cuba. Concurrently, the regime is steadily moving towards a declared dollarization of its retail operations, accepting cash or cards like VISA, MasterCard, and the government-operated Clásica card.
There is skepticism surrounding the potential downfall of the MLC, especially since the Cuban government recently reopened the Infanta and Santa Marta Market in Havana. This market now offers a wide range of products but has changed its payment system significantly—no longer accepting the MLC. Formerly allowing transactions in MLC, payments are now limited to VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, the latter offering a 5% purchase discount.
Additionally, in January, the 3ra y 70 supermarket in Playa was inaugurated, accessible solely with U.S. dollars. Beyond these venues, the regime has sanctioned over a dozen wholesale and retail stores to operate in foreign currencies, with eight linked to the MINCIN business system.
Understanding Cuba's Currency Dynamics
Why is the MLC increasing in value?
The rise in the MLC value is unusual, especially as fewer opportunities exist for its use. The reasons behind this surge remain unclear, as market analysts and independent media have not provided an explanation.
Will the MLC disappear in Cuba?
While some speculate about the MLC's decline, the government has recently shifted payment systems in specific markets, no longer accepting MLC. However, it is uncertain if this trend will lead to its complete disappearance.
What is the current exchange rate for the U.S. dollar in Cuba?
As of February 19, 2025, the exchange rate for the U.S. dollar in Cuba is 340 CUP, according to elToque.