As of December 20, Cuba's unofficial currency market is witnessing a notable development: the value of the Freely Convertible Currency (MLC) has dropped.
Early this Saturday morning, the digital currency used by the Cuban government decreased from 315 to 310 CUP, marking a reduction of five units compared to its value from the previous day.
This decline follows a previous rise in the MLC, fueled by optimism surrounding the implementation of the new "floating" official rate, which was expected to stabilize the Freely Convertible Currency and dispel fears of its potential disappearance.
Meanwhile, both the dollar and the euro remain unchanged today: the American currency is still valued at 440 CUP, and the European one at 480 CUP, according to the daily report from the independent outlet elTOQUE, which tracks currency fluctuations in Cuba.
Currency Stability Amidst Government Changes
For the third consecutive day, the dollar and euro continue to hold steady in Cuba's informal market.
So far, the Cuban government's so-called "floating rate" has not managed to impact the parallel market for these two significant currencies operating on the island.
elTOQUE reports that both the dollar and euro have maintained similar values for several days, indicating stability despite the government's announcement.
Current Exchange Rates as of December 20, 2025 - 7:08 a.m. in Cuba
Exchange rate for USD to CUP according to elTOQUE: 440 CUP.
Exchange rate for EUR to CUP according to elTOQUE: 480 CUP.
Exchange rate for MLC to CUP according to elTOQUE: 310 CUP.
Dollar and Euro Conversion Rates
Conversion of U.S. Dollar (USD) to Cuban Peso (CUP), based on December 20 exchange rates:
- 1 USD = 440 CUP
- 5 USD = 2,200 CUP
- 10 USD = 4,400 CUP
- 20 USD = 8,800 CUP
- 50 USD = 22,000 CUP
- 100 USD = 44,000 CUP
Conversion of Euros (EUR) to Cuban Peso (CUP):
- 1 EUR = 480 CUP
- 5 EUR = 2,400 CUP
- 10 EUR = 4,800 CUP
- 20 EUR = 9,600 CUP
- 50 EUR = 24,000 CUP
- 100 EUR = 48,000 CUP
- 200 EUR = 96,000 CUP
- 500 EUR = 240,000 CUP
Floating Exchange Rate Implementation
Since last Thursday, Cuba has launched a new exchange rate system. The Central Bank has introduced a floating rate for citizens and private entities, as part of a gradual reform aimed at reducing the informal economy and reorganizing currency flows.
The new system comprises three segments:
- Segment I (1x24 CUP): essential state operations.
- Segment II (1x120 CUP): businesses with external income.
- Segment III (floating rate): for individuals and small and medium-sized enterprises (SMEs), published daily by the BCC.
The stated goal is to move toward future unification without causing a monetary collapse.
Until the publication of this article, the official floating exchange rate values for this Saturday have not been disclosed.
As of yesterday, there was little variation: the official dollar was at 410 CUP, the euro at 480.77 CUP, and the MLC hovered around 300 CUP.
Implications for Individuals and Businesses
Individuals will be able to sell foreign currencies at the new official rate and purchase up to 100 USD through digital appointments. The supply remains limited, as only legally acquired funds (remittances, exports, etc.) will be sold.
Self-employed workers and SMEs can acquire foreign currency from fiscal accounts, up to 50% of their quarterly gross income, without resorting to the informal market.
Reform or Resignation?
The introduction of the floating rate effectively acknowledges the informal market, which has long set the true value of the Cuban peso.
This redesign might organize certain flows but does not replace the lack of trust in the state financial system. Without transparency, liquidity, and structural reforms, this measure risks becoming just another temporary fix in a model that has lost credibility.
On official platforms like Cubadebate, hundreds of users reacted with irony to the new rates, calling them a "state reissue" of the black market.
"So much criticism of elTOQUE only to end up the same," wrote one commenter.
The regime's Macroeconomic Stabilization Program aims to progress toward eventual exchange rate unification, but skepticism remains due to a lack of transparency and cash shortages.
With an average salary equivalent to 16 dollars a month at the official rate, Cubans continue to rely on the informal market for access to foreign currency and basic goods.
The activation of the floating rate seems more like implicit acknowledgment of the informal market, which has reflected the real value of the Cuban peso for years.
Without structural reforms or guarantees of liquidity, the measure could become another patch in an exhausted economic model disconnected from the country's everyday reality.
Understanding Cuba's Unofficial Currency Market
What is causing the drop in the value of the Freely Convertible Currency (MLC) in Cuba?
The decline in the MLC value is attributed to the implementation of a new "floating" official rate, which was expected to stabilize the currency but has resulted in a drop due to market dynamics.
How does the new floating exchange rate system in Cuba work?
The floating exchange rate system introduced by the Central Bank of Cuba is divided into three segments, affecting state operations, businesses with external income, and individuals or SMEs. The rate is published daily and aims to gradually reform currency flow and reduce informal trading.