For the third consecutive day, the freely convertible currency (MLC), the creation of the Cuban government that many believe is doomed to disappear, surprises by rising in price in the Cuban informal market.
The virtual currency increased from 250 to 255 CUP, five pesos more than this Sunday.
The increase is surprising considering that the spaces where Cubans can make transactions with that type of card have been limited in recent weeks.
This comes as the regime moves towards a declared dollarization of its sales, accepting cash or cards such as VISA, MasterCard, and Clásica, the latter operated by the government.
Meanwhile, the dollar and the euro remain unchanged in price in the informal currency exchange in Cuba, according to documentation by elToque in its daily report based on monitoring sales announcements on social media.
Exchange Rate Evolution
The US dollar is currently valued at 340 CUP and the euro at 345 CUP. In the case of the dollar, it has maintained a surprisingly stable rate since January 11th.
Exchange rate today 02/17/2025 - 9:53 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 340 CUP.
Exchange rate of the euro EUR to CUP according to elTOQUE: 345 CUP.
Exchange rate from MLC to CUP according to elTOQUE: 255 CUP.
Is the MLC going to disappear?
An example of the downfall of the MLS is that the Cuban regime reopened the doors of the Infanta and Santa Marta Market in Havana last week, with a wide range of products, but with a significant change in its payment system: it no longer accepts freely convertible currency (MLC).
Despite previously allowing transactions in MLC, it now only accepts payments via VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, the latter offering a 5% discount on purchases.
The change has caused discomfort, as the MLC cards are still recharged from abroad, but now they are not valid in that space, which reinforces the perception of arbitrariness in the economic policies of the Cuban government.
It is worth remembering that in January the 3rd and 70th supermarket was inaugurated in Playa, accessible only with dollars.
In addition to the mentioned spaces, the regime has authorized more than a dozen wholesale and retail businesses in foreign currency, eight of which are linked to the business system of MINCIN.
Frequently Asked Questions about the Freely Convertible Currency in Cuba
Why has the price of the Freely Convertible Currency (MLC) risen in Cuba?
The MLC has experienced a price increase in the Cuban informal market due to its limited availability and the growing demand in a context of partial dollarization of the Cuban economy. Although many expected its disappearance, the virtual currency has provided surprises with its upward behavior.
Is the MLC in Cuba doomed to disappear?
Despite measures taken by the Cuban government, such as excluding MLC from new businesses and promoting a dollarized economy, MLC continues to be used and its disappearance is not definitive. The currency still receives top-ups from abroad, although its use has been restricted in certain commercial spaces.
How does the partial dollarization of the Cuban economy affect the MLC?
Partial dollarization is reducing the use of MLC in favor of strong currencies like the dollar and the euro. This has led to the exclusion of MLC from new businesses and a greater emphasis on cash transactions or international cards, which increases uncertainty about its future.
What is the current exchange rate of the MLC against the CUP?
According to the latest report, the exchange rate of the MLC is 255 CUP in the informal Cuban market. This value has shown recent fluctuations, reflecting the volatility and uncertainty surrounding this currency.
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