Exchange rates in the Cuban informal market continue to reflect the distress of an economy caught between scarcity, inflation, and increasing dollarization.
This Saturday, the values of the US dollar and the euro remain stable at 370 and 390 Cuban pesos (CUP), respectively. However, the main focus of the day is the Convertible Currency (MLC), whose value has dropped to 260 CUP, after briefly rising on Friday to 265.
Informal exchange rate in Cuba Saturday, May 24, 2025 - 06:00
- Exchange rate of the dollar (USD) to Cuban pesos CUP: 370 CUP
- Exchange rate of the euro (EUR) to Cuban pesos (CUP): 390 CUP
- Exchange rate from (MLC) to Cuban pesos CUP: 260 CUP
The behavior of the MLC in recent months seems to be more akin to a game of chance than to coherent economic logic, despite the impact it has had on its circulation the approval by the government of Miguel Díaz-Canel of the "partial dollarization of the economy".
Exchange Rate Evolution
The popular term "cachumbambé," which in Cuba refers to the seesaw found in playgrounds, has become a perfect metaphor to describe the fluctuations of this digital currency. Its value rises and falls without clear warnings, causing unease among citizens who rely on its stability to access basic products in state stores.
Based on the analysis of its evolution over the past three months, a sustained decline has been observed that began in late February, when the MLC was over 280 CUP.
During March and early April, the decline was almost uninterrupted, reaching a low of 260 CUP. Since then, the currency has fluctuated slightly within a narrow range, without recovering its initial value.
This stagnation, which shows no signs of a strong rebound, further reflects the uncertainty prevailing in the national economic landscape.
Experts like economist Pavel Vidal attribute this behavior to a temporary excess of supply, caused by an increase in informal sales. In his most recent analysis for the Observatory of Currencies and Finances of Cuba (OMFi), he warned that this phenomenon could keep the value of the MLC under pressure for the remainder of the month, placing it between 255 and 265 CUP.
Meanwhile, Cuban families are trying to adapt to an environment where the value of foreign currencies determines real access to consumption.
The MLC, while still a central tool in foreign currency stores, is increasingly perceived as a symbol of institutional decay and as a virtual paper currency that rises and falls like an unbalanced seesaw. A monetary “cachumbambé” that reflects not only the market's ups and downs but also the emotional and economic instability facing the country.
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