The informal currency market in Cuba opens this Tuesday with a notable development: the Free Convertible Currency (MLC) is experiencing a resurgence.
In recent hours, the MLC, which plummeted by 25 pesos on Monday, has regained some ground, climbing to 270 CUP. This marks a 10-peso increase compared to its value on December 1st.
Meanwhile, the value of the U.S. dollar remains steady at 450 CUP for the third consecutive day, a rate it reached on Sunday.
The euro also holds its position, valued at 490 CUP with no movement.
Exchange Rates as of December 2, 2025, 6:55 a.m. in Cuba:
USD to CUP rate according to elTOQUE: 450 CUP.
EUR to CUP rate according to elTOQUE: 490 CUP.
MLC to CUP rate according to elTOQUE: 270 CUP.
Government's Crackdown on the Informal Currency Market
Recently, the Cuban government has ramped up efforts against the informal currency exchange market and the reference rates published by the independent outlet elTOQUE. This crackdown includes criminal investigations, threats against currency operators, and a communication strategy aimed at discrediting alternative sources for pricing the dollar, euro, and other currencies.
While this campaign may seem like a diversion from the country’s deep economic crisis, an article by economist Pavel Vidal, published on Monday in elTOQUE, suggests the real goal is to pave the way for a new official floating exchange rate. By undermining the informal market and its key players, the government aims to channel remittances through official avenues and gain more control over currency flow. However, it's doing so through coercive measures rather than competing with transparency and attractive rates.
Past policy failures, such as the 2021 monetary restructuring and the 2022 adjustment, have left the government in a vulnerable position. In both scenarios, the informal market exposed the disconnection of official rates from economic reality.
Implications of a New Floating Exchange Rate
The government is proposing a floating rate, but doubts linger about its actual feasibility in a system not operating under market logic. Additionally, there are signs that the true intent behind formalization is to collect foreign currency rather than improve the system's efficiency or legality. If the state purchases foreign currency without offering it back to the public, inflation could worsen, according to Vidal.
Ultimately, elTOQUE warns that without structural reforms, an ostensibly floating official rate could lead to new distortions, this time originating from the state apparatus. Imposing an unrealistic rate or suppressing the informal market without offering better conditions would only result in negative outcomes such as a drop in remittances, a halt to private commerce, and increased shortages.
Time will tell the outcome of these developments.
Conversion Rates for U.S. Dollars (USD) to Cuban Pesos (CUP) as of December 2:
1 USD = 450 CUP.
5 USD = 2,250 CUP.
10 USD = 4,500 CUP.
20 USD = 9,000 CUP.
50 USD = 22,500 CUP.
100 USD = 45,000 CUP.
Conversion Rates for Euros (EUR) to Cuban Pesos (CUP):
1 EUR = 490 CUP.
5 EUR = 2,450 CUP.
10 EUR = 4,900 CUP.
20 EUR = 9,800 CUP.
50 EUR = 24,500 CUP.
100 EUR = 49,000 CUP.
200 EUR = 98,000 CUP.
500 EUR = 245,000 CUP.
FAQ on Cuba's Currency Market Changes
What is the current exchange rate for the MLC in Cuba?
As of December 2, 2025, the exchange rate for the MLC is 270 CUP.
Why is the Cuban government targeting the informal currency market?
The government is trying to weaken the informal market to implement a new official floating exchange rate, thereby gaining more control over currency flows and remittances.
What could be the consequences of an official floating exchange rate in Cuba?
Without structural reforms, an official floating rate could lead to distortions, a decrease in remittances, halted private commerce, and increased shortages.