The unofficial currency market in Cuba has seen a significant development as of December 21st: the value of the Freely Convertible Currency (MLC) has dramatically increased.
On Sunday morning, the digital currency managed by the Cuban regime rose from 310 to 320 Cuban Pesos (CUP), marking a ten-peso increase compared to its previous day's value.
Currently, the MLC is the only currency in Cuba that has responded in the informal market to the implementation of the "floating" official rate, which came into effect on December 18, promising stability for the MLC and aiming to dispel forecasts of its potential disappearance.
In contrast, the value of the U.S. dollar and the euro remains unchanged today; the American currency is still valued at 440 CUP, while the European currency is at 480 CUP. This is according to the daily report from the independent outlet elTOQUE, which tracks the price fluctuations of currencies in Cuba.
For the fourth consecutive day, the dollar and the euro have shown no movement in Cuba’s informal market. The Cuban government's so-called "floating rate" has yet to impact the parallel market for these two major currencies operating on the island.
According to elTOQUE, both the dollar and the euro have maintained similar values for several days, indicating stability despite the governmental announcement.
Exchange Rates as of December 21, 2025
Early morning in Cuba, the exchange rates are as follows:
- USD to CUP according to elTOQUE: 440 CUP.
- EUR to CUP according to elTOQUE: 480 CUP.
- MLC to CUP according to elTOQUE: 320 CUP.
Dollar and Euro to Cuban Peso Conversion
Conversion rates for U.S. Dollar (USD) to Cuban Peso (CUP) based on today's 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 rates for 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
Implementing the Floating Rate
Since last Thursday, Cuba has introduced a new exchange rate framework. The Central Bank has launched a floating rate for citizens and private entities as part of a gradual reform aiming to reduce informality and restructure the flow of foreign exchange.
Individuals can sell currencies at the new official rate and purchase up to 100 USD through digital queues. However, the supply remains limited to what is legally acquired (remittances, exports, etc.).
Self-employed workers and small and medium-sized enterprises can obtain foreign currencies from fiscal accounts, up to 50% of their gross quarterly income, without resorting to the informal market.
The new system is divided into three segments:
- Segment I (1x24 CUP): essential state operations.
- Segment II (1x120 CUP): companies with foreign income.
- Segment III (floating rate): for natural persons and small businesses, published daily by the Central Bank of Cuba (BCC).
As of the time of writing, the official floating rate for today’s foreign currencies has not been disclosed.
Reform or Resignation?
The introduction of the floating rate effectively acknowledges the informal market, which has long dictated the true value of the Cuban peso.
This redesign does not address the lack of trust in the state financial system. Without transparency, liquidity, and structural reforms, this measure risks becoming yet another patch in a model that has lost credibility.
The regime's Macroeconomic Stabilization Program aims to progress towards eventual exchange unification but faces skepticism due to the lack of transparency and cash shortages.
With an average salary equivalent to 16 dollars per month at the official rate, Cubans continue to rely on the informal market to access foreign currencies and basic goods.
The implementation of the floating rate, rather than an attempt at control, appears to be an implicit acknowledgment of the informal market, which for years has reflected the real value of the Cuban peso.
Without structural reforms or liquidity guarantees, the measure could become just another patch in an exhausted economic model, disconnected from the country's everyday reality.
Understanding Cuba's Currency Market Fluctuations
What prompted the increase in MLC's value in Cuba?
The MLC's value increased in response to the implementation of a "floating" official rate aimed at stabilizing the currency and countering predictions of its disappearance.
How does the floating rate affect the informal market?
The floating rate, while intended to regulate exchange, implicitly validates the informal market, which has historically set the true value of the Cuban peso.
Why have the dollar and euro values remained stable?
The dollar and euro have shown stability due to the current economic conditions and the unchanged supply-demand dynamics in the informal market despite recent government announcements.