The informal currency market in Cuba opened this Monday with a slight but significant drop in the exchange rate of the euro and the MLC (freely convertible currency), in contrast to Sunday’s figures.
According to the independent monitoring by elTOQUE, the euro is currently at 385 CUP, which represents a decrease of 2.5 pesos compared to the 387.5 CUP recorded yesterday. For its part, the freely convertible currency (MLC) drops to 260 CUP, decreasing by 5 pesos in just 24 hours.
Informal exchange rate in Cuba Monday, May 5, 2025 - 07:00
- Exchange rate of the dollar (USD) to Cuban pesos CUP: 370 CUP
- Exchange rate of the euro (EUR) to Cuban pesos CUP: 385 CUP
- Exchange rate from (MLC) to Cuban pesos CUP: 260 CUP
The graphs show a sustained downward trend in the exchange rate of the MLC in the Cuban informal market, both in the short and medium term.
In the last seven days, the exchange rate of the MLC fell from 265 CUP on April 28 to 260 CUP on May 5, a continuous decline that suggests lower demand or an increase in the availability of this currency in the informal market.
Exchange Rate Evolution
On the other hand, the graph from the last three months reveals an even more significant picture: after reaching a peak of around 285 CUP at the end of February, the MLC experienced a gradual decline with small fluctuations, solidifying below 265 CUP in April and remaining in that range until the last drop in May.
This behavior reflects a progressive weakening of this currency, possibly linked to factors such as the loss of confidence in its use for purchases in state-owned stores, stemming from the gradual conversion of these into businesses operating in euros and dollars.
The correction in the euro's price this Monday breaks the upward trend that the European currency had been experiencing, which in recent weeks showed a tendency to appreciate against the increasingly weakened Cuban peso.
Although slight, this setback could reflect a temporary pause in the pressure on the informal demand for euros amid a backdrop of increasing economic instability.
The US dollar, on the other hand, remains stable at 370 CUP, unchanged since Saturday, reinforcing its position as a key reference in an environment of high inflation and constant loss of purchasing power.
The decline of the MLC, more pronounced than that of the euro, suggests a possible decrease in demand for this currency in the informal circuit, where uncertainty about its availability and acceptance in the network of state-run stores continues to weigh heavily.
The evolution of these rates continues to set the pace of the domestic economy, which is increasingly reliant on foreign currencies. As long as there are no structural reforms, the informal market will remain the only release valve for millions of Cubans who need access to strong currencies amid the crisis.
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