The informal currency exchange market in Cuba is witnessing shifts today, yet these aren't driven by changes in the dollar or the euro. On this Thursday morning, the Cuban black market reflects yet another increase in the Freely Convertible Currency (MLC), with its rate climbing by five pesos to reach 270 CUP, as reported by elToque.
This virtual currency, used by the regime in select stores and often perceived as on the brink of obsolescence, has increased by a total of 25 pesos since February 14. Such a rise is unusual given the trend towards stability in foreign currency rates since the end of last year. Meanwhile, both the dollar and the euro have maintained their prices, with the US dollar valued at 340 CUP and the euro at 345 CUP.
Exchange rates on February 20, 2025, at 8:11 a.m. in Cuba are as follows:
- USD to CUP: 340 CUP
- EUR to CUP: 345 CUP
- MLC to CUP: 270 CUP
The rise in the MLC is intriguing, especially since opportunities for Cubans to make transactions with this type of card have recently been restricted. The resurgence of the MLC remains an enigma, with no commentary yet from the independent outlet elToque, which closely monitors currency fluctuations in Cuba.
In contrast, the Cuban regime is steadily progressing towards a de facto dollarization of its sales, accepting cash and cards like VISA, MasterCard, and the government-operated Clásica card. Despite the apparent decline of the MLC, the regime reopened the Infanta and Santa Marta Market in Havana last week, offering a wide range of products but with a notable shift in its payment system: MLC is no longer accepted.
Previously allowing transactions in MLC, payments in these markets are now limited to cards such as VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, the latter offering a 5% discount on purchases. Along with these markets, the government has sanctioned over a dozen wholesale and retail businesses to operate in foreign currencies, eight of which are linked to the MINCIN enterprise system.
Key Inquiries on Cuba's Currency Market
Why is the MLC increasing in value?
The MLC's increase is unusual and seems to be happening despite reduced transaction opportunities, possibly due to market speculations or underlying economic strategies by the regime.
What are the current exchange rates for major currencies in Cuba?
As of February 20, 2025, the exchange rates are 340 CUP for 1 USD, 345 CUP for 1 EUR, and 270 CUP for 1 MLC.
How is the Cuban government handling currency transactions?
The government is moving towards dollarization, allowing transactions in cash and cards like VISA, MasterCard, and Clásica, while reducing reliance on the MLC.