Juana Lilia Delgado, president of the Central Bank of Cuba (BCC), announced the beginning of a gradual transformation of the foreign exchange market, which will take effect on December 18.
The measure, as explained in a television appearance, aims to address a context in which different exchange rates coexist, which - as indicated - creates "distortions, encourages informality, and complicates banking and fiscal traceability."
The reform aims to reverse that fragmented and ineffective scenario through a framework that includes three exchange segments and a central innovation: the introduction of a floating exchange rate for certain operations.
"The strategy focuses on recovering the purchasing power of the national currency," affirmed Delgado.
According to the management, the design -supported by the Macroeconomic Stabilization Program and the Government Program- does not aim for an immediate unification of the exchange rate, but rather a gradual path towards that objective, without implementing shock therapies that would lead to sharp devaluations or further losses in purchasing power.
How is the new Cuban currency exchange market structured?
Starting from December 18, the market is divided into three official segments:
Segment I: Fixed rate of 1x24
This segment is reserved for state operations that sustain essential public services, such as the supply of medicine, fuels, electricity, basic goods, and transportation.
Its continuation at a symbolic rate responds to the need to avoid transferring abrupt price increases to the population.
-Segment II: Fixed rate of 1x120
In this space, state and mixed entities generating external income participate.
The rate aims to provide more competitive conditions for exporters and players with the potential to capture foreign currency, enhancing their profitability and strengthening the trade balance.
Segment III: floating exchange rate
It is the great novelty. It applies to individuals and non-state management forms.
The rate will fluctuate according to market supply and demand and will be published daily by the Central Bank of Cuba.
It has a temporary nature, but its strategic objective is to lead towards eventual unification.
What are the economic and political foundations of this transformation?
The Central Bank acknowledges that an abrupt exchange rate unification, without minimal macroeconomic conditions, could lead to “a sharp devaluation, with inflationary effects greater than those currently seen.”
For that reason, Minister Juana Lilia Delgado emphasized that the plan is being implemented under the principles of "gradualness and temporality," appealing to transitional schemes already applied in other countries with similar distortions.
Ian Pedro Carbonell, director of Macroeconomic Policies at the BCC, stated that the goal is to "organize foreign currency flows, strengthen financial intermediation, and establish a functional, transparent, and legal currency exchange market."
He added that “the floating rate is not based on speculation, but on real operations, supported by the conditions of the economy.”
What does the floating rate mean for individuals?
Citizens will be able to sell foreign currency in the banking system at a floating rate that, according to the authorities, will be more attractive than the previous official rates.
For purchases, the limit of up to 100 dollars per person remains in place, accessed through digital appointments at 41 existing offices.
The supply of foreign currency, however, remains limited.
The government has reiterated that the market will only sell what it is able to buy, without using international reserves. This means that availability will depend on the influx of foreign currency from exports, remittances, transfers, and sales by CADECA.
What has been the first floating rate published by the BCC and CADECA?
This Thursday, December 18th, the Central Bank of Cuba and the network of Currency Exchange Houses (CADECA) published the first rates for the floating segment. The outcome was not surprising, but it was indeed telling:
The US dollar is officially sold at 410 CUP and the euro at 481.42 CUP, according to the Central Bank.
This is very close to the informal rates reported by the independent media elTOQUE, which today places the dollar at 440 CUP and the euro at 480 CUP.
In the case of the euro, the official rate is even higher than that of the informal market, which marks an unprecedented fact: the State recognizes (and in a way endorses) a value greater than that of the street.
The rates at CADECA reflect an operating margin
Dollar:
Purchase: 401.80 CUP.
Sale: 418 CUP (a difference of 22 pesos compared to the informal rate).
Euro:
Purchase: 471.79 CUP.
Sale: 491.05 CUP (about 11 pesos higher than the value of elTOQUE).
This first part confirms what was expected: the new floating exchange market does not "combat" the informal sector, but instead approaches it to absorb its operations and redirect them to the institutional realm.
What will happen with the MLC accounts?
Accounts in Freely Convertible Currency will remain operational and, according to Delgado, efforts have been made to "stabilize and progressively strengthen" these accounts to restore their full functionality.
Currently, many of these cards are rejected at stores or have restrictions for international purchases.
And what changes for self-employed workers and micro, small, and medium-sized enterprises?
Private management entities are gaining, for the first time, a legal channel to acquire foreign currency. They will be able to do so from their fiscal accounts, without handling cash.
The maximum purchase will be up to 50% of the average gross income of the last quarter, and it may be flexible in the future.
This segment will also enable direct trading between economic actors and is expected to facilitate the banking of transactions that currently take place informally. According to Carbonell, the goal is to "close a productive cycle without operating in illegal markets."
Will the new currency exchange market displace the informal one?
In the short term, no. The authorities themselves admit that the measure is not a "magic solution."
Access restrictions, the limited supply, and the distrust built up over years of currency rigidity continue to make the informal market functional and appealing to many.
However, if the scheme aims to consistently attract foreign currency and offer competitive rates, it could become a viable option. To achieve this, ensuring transparency, liquidity, and operational expansion will be crucial.
What is expected in the medium term?
The Cuban government maintains the narrative that this three-segment structure is temporary.
"This structure will gradually converge these three official exchange rates towards a single exchange rate," Ian Pedro Carbonell assured.
However, the recent experience with the so-called "monetary reordering" suggests caution.
The promises of transitoriness in Cuba often extend over time.
The challenge is not only technical but political: to restore trust in the monetary institution after years of improvised measures and exchange rate asymmetries that have impacted households and businesses.
What is the critical perspective on this reform?
The government, by introducing a floating rate close to the informal one, is acknowledging that the parallel market has long been the only real reference for the value of the Cuban peso.
More than a victory for state control, this reform seems like a tactical surrender to an undeniable reality.
Although the redesign could partially organize the flow of foreign exchange, its impact will be limited if it is not accompanied by further structural reforms, trade openness, institutional transparency, and legal security.
Exchange rate gaps not only impact the macroeconomy: they also deepen inequality, erode real wages, and push thousands of Cubans into a subsistence system outside of state control.
The currency transformation could be a tool, but without a different vision for the country, it will remain an aspirin against a systemic diagnosis.
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