The Free Convertible Currency (MLC) is in free fall in the informal Cuban market. In recent hours, the monetary creation used by the Cuban regime in the increasingly scarce stores authorized for such transactions, has dropped another five pesos and is now at 240 CUP per unit.
The dollar and the euro remain unchanged this July 8, valued at 385 for the US currency and 425 CUP for the European currency.
Exchange rate today 08/07/2025 - 9:06 a.m. in Cuba:
Exchange rate of the dollar USD to CUP according to elTOQUE: 385 CUP.
Exchange rate of the euro EUR to CUP according to elTOQUE: 425 CUP.
Exchange Rate Evolution
Exchange rate from MLC to CUP according to elTOQUE: 240 CUP.
What is happening with the MLC?
Between June 10 and June 28, the MLC remained stable, priced at 260 CUP. However, since the end of June, it began to decline and has dropped by 20 pesos in just a few days.
In April, the independent media elTOQUE raised a crucial question for the Cuban domestic economy: What is the immediate fate of the freely convertible currency (MLC)?
Through its Observatory of Currencies and Finances of Cuba (OMFi), the outlet then analyzed the signals, economic indicators, and growing rumors regarding a possible disappearance or transformation of the controversial virtual currency.
Since late 2024, rumors about the "possible" elimination of the MLC began to circulate widely among Cubans.
Although the authorities have assured that retail establishments and other services would continue to operate with this currency, the reality is that the increase in stores operating exclusively in dollars has caused concern.
ElTOQUE warns that this process caused "some panic among many people who have seen the depreciation in their accounts of the also known as banking dollar."
The MLC in Decline: Signs from the Informal Market
According to reports from the OMFi, while partial dollarization has brought benefits to certain sectors, it has also exacerbated inequality.
"Partial dollarization brings liquidity and financial stability to certain sectors and markets, but it also generates segmentation and increased inequality," the analysis notes.
This trend has led to an increase in the demand for strong currencies such as the dollar and the euro, and has contributed to the depreciation of the MLC.
"The reduced interest in acquiring and purchasing MLC and Cuban pesos leads to a decrease in their demand in the informal currency market, which contributes to their continued depreciation," warned the OMFi.
Behavioral Change: From Saving to Letting Go
This context has led to a change in the economic behavior of the population.
elTOQUE reports that, after a period characterized by intense MLC purchases to take advantage of price differences on products such as cigars, now "the number of people looking to get rid of MLC or sell it at the current market price has increased."
The devaluation of this currency has transformed what was once a valuable asset into a less reliable resource, especially as access to dollar stores has expanded for those receiving remittances or holding foreign currency.
Despite the rumors and the depreciation, the analysis by elTOQUE clarified in April the idea of an immediate disappearance of the MLC.
However, the evolution of the freely convertible currency raises the question: Is the MLC coming to an end?
Equivalence of United States Dollar (USD) to Cuban Peso (CUP), according to the exchange rates for this July 8:
1 USD = 385 CUP.
5 USD = 1,925 CUP.
10 USD = 3,850 CUP.
20 USD = 7,700 CUP.
50 USD = 19,250 CUP.
100 USD = 38,500 CUP.
Equivalence of Euro (EUR) banknotes to Cuban Peso (CUP):
1 EUR = 425 CUP.
5 EUR = 2.125 CUP.
10 EUR = 4,250 CUP.
20 EUR = 8,500 CUP.
50 EUR = 21,250 CUP.
100 EUR = 42,500 CUP.
200 EUR = 85,000 CUP.
500 EUR = 212,500 CUP.
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