On March 1, 2025, a minor decline was observed in the exchange rates for the United States dollar (USD) and the Freely Convertible Currency (MLC) within Cuba's informal currency market. According to data shared by the independent outlet elTOQUE, the USD was trading at 342 Cuban pesos (CUP), a drop of three pesos compared to the previous day. Meanwhile, the MLC was valued at 285 CUP, marking a five-peso decrease from Friday's rate in the black market. The euro remained stable, selling at 345 CUP on Saturday.
Exchange Rates in Cuba (Saturday, March 1, 2025 - 08:00)
- USD to Cuban pesos (CUP): 342 CUP
- Euro (EUR) to Cuban pesos (CUP): 345 CUP
- MLC to Cuban pesos (CUP): 285 CUP
In recent weeks, the MLC saw an unusual upward trend, reaching historic highs. Notably, on February 27, it was priced at 285 CUP, continuing a surge that began on February 14 after lingering for several weeks at 245 CUP.
Conversely, the dollar has shown stability within the informal market, maintaining a rate around 340 CUP for more than a month and a half. The partial "dollarization of the economy" and the increase in dollar-based stores—offering essential goods scarce in the rationed family basket distribution system—are driving this persistent demand for the U.S. currency, which the Cuban regime deems crucial to stave off economic collapse.
It's crucial to highlight that exchange rates in the informal market can vary widely due to the absence of a transparent official market and the impact of both external and internal factors on Cuba's economy.
Key Factors Affecting Cuba's Informal Currency Market
Why is there a persistent demand for the U.S. dollar in Cuba?
The persistent demand for the U.S. dollar in Cuba is driven by the partial dollarization of the economy and the proliferation of dollar-based stores that offer essential goods, which are scarce in the standard rationed distribution system.
How do external and internal factors influence Cuba's exchange rates?
Exchange rates in Cuba's informal market are affected by a lack of an official transparent market and are influenced by external factors like international sanctions and internal economic policies and challenges.