Surge in currency exchange rates at street-level trading in Cuba

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By CiberCuba Editorial Team

Friday, March 27, 2026 - 09:28

Street in Havana and dollar and euro bills (Reference image)Photo © CiberCuba/ChatGpt

The informal currency market in Cuba opens this Friday with a new development: the value of the freely convertible currency (MLC) has risen.

In recent hours, the Freely Convertible Currency has regained its value, increasing from 385 to 400 CUP, adding a new episode of instability for the digital monetary creation that the Cuban regime has been operating since 2019.

What is happening with the dollar and the euro?

The dollar and the euro remain unchanged today.

The US dollar remains valued at 515 CUP, and the euro at 580 CUP, according to the daily report from elTOQUE, which documents the fluctuations of currencies.

Exchange Rate Evolution

The US dollar remains at 515 CUP for the sixth consecutive day, marking "the second longest streak of stagnation this month after the historic 13-day streak at the beginning of March."

So far this month, it has accumulated a growth of only 1% compared to the end of February.

The euro also remains at 580 CUP for the sixth consecutive day.

So far in March, it has accumulated an increase of 10 CUP (1.8%) compared to the end of February, and for the year, it amounts to a rise of 225 CUP (63.4%).

elTOQUE states that "five consecutive days without movement for the euro is also a rarity," and that "the market seems to have found a temporary balance around that level."

The cachumbambé of the MLC

The Freely Convertible Currency (MLC), created by the regime as a mechanism to capture foreign exchange, has ended up becoming one of the most volatile indicators in the already fragmented currency market of the island.

Although it was originally presented as a temporary solution to supply stores with hard currency, in practice it has become trapped between the structural scarcity of foreign currency, state restrictions, and the growing reliance on the informal market.

Its value, which lacks a clear backing or a transparent official rate against the Cuban peso, is effectively determined in the street, where supply and demand respond quickly to any economic or political signal.

The constant fluctuations of the MLC reflect the fragility of the Cuban monetary system and the population's distrust in this instrument.

Unlike the dollar or the euro, which are seen as safer havens, the MLC is directly dependent on internal government decisions and the availability of products in state-owned stores, leading to sharp fluctuations in its exchange rate.

Rumors about changes in sales policies, shortages, or new restrictions are often enough to trigger a spike in value or cause sudden drops, revealing a highly sensitive and unstable market.