The Freely Convertible Currency (MLC) has experienced a drop of 20 pesos this Wednesday in Cuba's informal market, landing at 400 CUP, according to data from elTOQUE.
This decline contrasts with the behavior of the U.S. dollar and the euro, which are maintaining the record values reached on Tuesday.
In Cuba, the dollar and the euro continue their upward trend: the U.S. dollar remains at 540 CUP, and the euro at 618 CUP, marking historical highs they achieved yesterday after rising four and three pesos, respectively, in just one day.
Current Exchange Rates as of May 6, 2026
As reported by elTOQUE, the exchange rate for the U.S. dollar (USD) to the Cuban Peso (CUP) is 540 CUP. Similarly, the euro (EUR) is valued at 618 CUP, while the MLC stands at 400 CUP.
The MLC had previously surged by 20 pesos in a single day on Monday, from 400 to 420 CUP. However, the adjustment this Wednesday brings it back to its Sunday level, highlighting the high volatility that characterizes this digital currency compared to the more stable performance of the dollar and euro.
Volatility of the MLC
Introduced in 2019 by the Cuban government as a digital tool to attract foreign currency, the MLC has shown erratic behavior in recent weeks: it hit a low of 385 CUP on April 14, climbed to 420 CUP by May 4, and now falls back to 400 CUP.
This fluctuation is structurally driven. While the dollar and euro reflect the widespread shortage of foreign currency in Cuba's economy, the MLC's value is also influenced by trust in the state banking system and the regime's administrative controls, which introduce unique oscillations.
Rising Dollar and Euro
Meanwhile, the ascent of the dollar and euro is part of an upward trend that has been setting new records for weeks. The euro broke the 600 CUP barrier for the first time on April 19, and by the end of April, the dollar was at 535 CUP, already surpassing the maximum projections of Cuba's Currency and Finance Observatory (OMFi), which had estimated a cap of 533 CUP for the dollar and 604 for the euro.
This currency spiral is driven by structural factors that the regime has failed to address. Since January 2026, Venezuela has completely halted its oil supply, which used to cover 30% to 35% of the island's energy demand. Additionally, tourism plummeted by 48% year-on-year in the first quarter, with only 35,561 visitors in March. The International Monetary Fund (IMF) predicts a 7.2% contraction in Cuba's GDP this year, while excessive monetary emission to finance the fiscal deficit exacerbates the foreign currency shortage.
The dollar and euro continue their relentless rise in Cuba's informal currency market, while the peso's value diminishes further each day.
Currency Conversion Rates: Dollar and Euro to Cuban Peso
Here are the equivalent values of U.S. dollar bills to Cuban Pesos (CUP) based on May 6 exchange rates:
1 USD = 540 CUP
5 USD = 2,700 CUP
10 USD = 5,400 CUP
20 USD = 10,800 CUP
50 USD = 27,000 CUP
100 USD = 54,000 CUP
Similarly, here are the conversion rates for Euros (EUR) to Cuban Pesos (CUP):
1 EUR = 618 CUP
5 EUR = 3,090 CUP
10 EUR = 6,180 CUP
20 EUR = 12,360 CUP
50 EUR = 30,900 CUP
100 EUR = 61,800 CUP
Understanding Cuba's Currency Market Dynamics
What is causing the MLC's volatility?
The MLC's volatility is largely due to its reliance on the state banking system's trust and the government's administrative controls, unlike the dollar and euro, which reflect general currency shortages.
Why are the dollar and euro rising so rapidly in Cuba?
The rapid increase in the dollar and euro is attributed to a combination of structural issues, including halted oil supplies from Venezuela, a drastic drop in tourism, and excessive monetary emission exacerbating currency shortages.
How does the current exchange rate impact Cuba's economy?
The high exchange rates of the dollar and euro against the Cuban Peso indicate severe foreign currency shortages, affecting import capacity and overall economic stability in Cuba.