At dawn this Wednesday, the Cuban informal market brings a new surprise, but it's not the resurgence of the dollar's value; rather, it's another day of increase for the Freely Convertible Currency (MLC).
In recent hours, the MLC has risen another five pesos and is now at 265 CUP, according to elToque.
The virtual currency that the regime operates with in certain stores, which some believe is doomed to disappear, has risen by a total of 20 pesos since February 14.
This is an unusual movement, as currencies have generally leaned towards stability since the end of the year.
Meanwhile, the dollar and the euro remain unchanged in price.
Exchange Rate Evolution
The US dollar remains valued at 340 CUP and the euro at 345 CUP. In the case of the dollar, it has maintained a surprising stability since January 11.
Exchange rate today 02/19/2025 - 8:11 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: 265 CUP.
Will the freely convertible currency disappear in Cuba?
The increase in the Freely Convertible Currency is surprising considering that the spaces in which Cubans can make transactions with that type of card have been limited in recent weeks.
The resurrection of the MLC is a mystery that has yet to be addressed by the independent media elToque, which monitors the fluctuations of currency prices in Cuba.
This comes as the regime moves towards a declared dollarization of its sales, accepting cash or cards like VISA, MasterCard, and La Clásica, the latter operated by the government.
It's hard to deny the decline of the freely convertible currency, especially since the Cuban regime reopened last week the doors of the Infanta and Santa Marta Market in Havana, offering a wide variety 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 with VISA, MasterCard, MIR, and prepaid cards issued by BANDEC, AIS, Viajero, and Clásica, the latter offering a 5% discount on purchases.
It is worth noting, in addition, that in January the 3ra y 70 supermarket in Playa was inaugurated, accessible only with dollars.
In addition to the mentioned spaces, the regime has authorized more than a dozen wholesale and retail shops in foreign currency, eight of which are linked to the business system of MINCIN.
Frequently Asked Questions about the Exchange Rate and MLC in Cuba
What is the current exchange rate of the dollar, euro, and MLC in Cuba?
The current exchange rate in the Cuban informal market is 340 CUP per dollar, 345 CUP per euro, and 265 CUP per MLC. These figures indicate that, while the dollar and euro have maintained their stable value, the Freely Convertible Currency (MLC) has experienced a significant increase in recent days.
Why has the value of the MLC increased in Cuba?
The increase in the value of the MLC is surprising given that the Cuban regime has restricted transactions with this currency. The rise may be linked to economic uncertainty and the constraints on its use, as the government moves towards the dollarization of its sales.
Will the Convertible Currency disappear in Cuba?
Despite the uncertainty, the Cuban government has denied that the MLC will disappear. However, the opening of new businesses that do not accept MLC and the increasing dollarization of the market suggest that its usage could become more and more limited.
What does partial dollarization in Cuba mean for consumers?
Partial dollarization implies that many products and services are only available in dollars or euros, which increases the demand for these currencies and leaves the CUP and MLC with limited purchasing power. This heightens the economic vulnerability of the population that does not have access to these currencies.
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