Cuba's Central Bank introduced a third official floating exchange rate of 410 pesos per US dollar on December 18, 2025, adding to the existing rates of 24 and 120 pesos. The measure aims to capture foreign currency from the informal market and progress toward gradual monetary unification. Officials defend the change as responsible, though doubts remain about its impact on the economic crisis.
On December 18, 2025, Cuba's Central Bank (BCC) announced the creation of a foreign exchange market with three segments. The first maintains a fixed rate of 24 pesos per dollar for state allocations in essential goods like fuel, medicines, and basic food rations. The second, at 120 pesos per dollar, is reserved for foreign-currency-generating entities, such as tourism.
The new feature is the third segment with a floating rate, starting at 410 pesos per dollar, to be published daily by the BCC. This rate applies to individuals and non-state management forms, aiming to channel foreign currency flows through the financial system and curb informality, where the dollar trades around 440 pesos.
Juana Lilia Delgado Portal, BCC president, stated on state television that multiple rates have caused distortions and informality, acknowledging the gap with the real market. Ian Pedro Carbonell, Director of Macroeconomic Policies, stressed that the floating rate will be based on actual transactions to attract currency from remittances, exports, and bank transactions.
The government argues that immediate unification would trigger sharp devaluation and severe inflation, citing international experiences favoring transitional multi-segment schemes. Sources of foreign currency include remittances, bank and Cadeca sales, and exporters who can sell part of their earnings at this competitive rate.
However, the measure comes amid a deep crisis, with low exports and declining tourism. BCC Resolutions 127 and 128 regulate the market and took effect that day. Officials promise to stabilize MLC accounts and gradually strengthen the Cuban peso, though success hinges on broader structural reforms.
