On Sunday, Cuba's informal currency market experienced stability with the U.S. dollar and euro, while the Freely Convertible Currency (MLC) saw another uptick. This development underscores that the pressure on the Cuban peso remains, even as the primary reference currencies have paused their recent climbs.
As reported by the independent observatory elTOQUE, the U.S. dollar (USD) held steady at 495 Cuban pesos (CUP), maintaining the same rate as the previous day. Meanwhile, the euro (EUR) retained its exchange rate of 550 CUP following a significant surge over the past week. The MLC, however, increased by ten pesos, reaching 410 CUP, recovering the ground it lost on Saturday.
Current Exchange Rates in Cuba's Informal Market
Date: Sunday, February 8, 2026 - 06:33 AM
USD to CUP: 495 CUP
EUR to CUP: 550 CUP
MLC to CUP: 410 CUP
This weekend's stabilization of the dollar and euro follows several days of gradual but consistent gains, pushing both currencies to recent highs. The dollar solidified its position at 495 CUP after breaching the 490 mark, while the euro ended the week with a 20-peso increase, asserting itself as the most expensive currency in Cuba's informal market.
Understanding the MLC's Volatility
The MLC's behavior reveals a different pattern. After dropping to 400 CUP on Saturday, the digital currency rebounded on Sunday, showing a more erratic trend driven by balance availability, demand in state-run stores, and its decreasing appeal compared to physical currencies, which are seen as safer havens.
This situation unfolds amid a persistent disconnect between the informal market and the official exchange rate set by the Central Bank of Cuba (BCC). Despite the monetary authority's recent efforts to devalue the peso through a "floating rate," the gap with the street rate remains substantial, reinforcing the informal market's role as the true indicator of money's value.
Experts agree that today's calm does not signal a trend reversal but rather a technical pause after a week of intense currency pressure. In Cuba, such stable periods are often short-lived and vulnerable to economic or political shocks.
For now, the informal market seems to have absorbed recent fluctuations, yet underlying issues persist: inflation, currency shortages, and a structural lack of confidence in the Cuban peso continue to drive citizens to safeguard their purchasing power with stronger currencies.
FAQs on Cuba's Informal Currency Market
Why is the MLC experiencing more volatility compared to the dollar and euro?
The MLC's volatility is influenced by its availability, demand in state-run stores, and its declining attractiveness compared to physical currencies. These factors create an unstable pattern in its exchange rate.
How does the informal market affect the official exchange rate in Cuba?
The informal market often serves as the true benchmark for currency value in Cuba, highlighting the disconnect with the official exchange rate set by the Central Bank. This divergence underscores the limitations of the official rate in reflecting real market conditions.
What factors contribute to the pressure on the Cuban peso?
Inflation, currency shortages, and a general lack of trust in the Cuban peso are primary factors driving pressure on the local currency, pushing citizens to invest in foreign currencies as a means of preserving their financial stability.