The Central Bank of Cuba has initiated a comprehensive transformation of its foreign exchange market with the implementation of a three-segment exchange rate system effective December 18, 2025. Under the leadership of President Juana Lilia Delgado Portal, the monetary authority has designed this gradual approach to address longstanding economic distortions while avoiding severe macroeconomic shocks.
The new structure establishes two fixed exchange rates—Segment I operating at 1:24 and Segment II at 1:120—alongside a third segment featuring a daily floating rate determined by market forces. This multi-tiered system aims to bridge the gap between official rates and the real value reflecting Cuba’s foreign currency shortage while protecting essential transactions from sharp devaluation.
Central Bank officials emphasized that immediate unification without transition could trigger excessive inflation and further erosion of the Cuban peso’s purchasing power. The strategy instead focuses on gradual correction of accumulated imbalances through controlled mechanisms that connect state and non-state economic actors in production, export, and marketing operations.
The floating rate segment specifically targets increased foreign currency inflows by offering competitive prices to exporters and remittance senders. This approach intends to discourage informal market activities while creating incentives for export sector development and higher wage payments to skilled workers.
Complementing these measures, the government will strengthen MLC accounts and guarantee operability of foreign currency transactions for non-state enterprises. The reforms form part of broader macroeconomic stabilization efforts aligned with Cuba’s socialist development objectives, prioritizing reduced inflation, currency convertibility, and economic growth.
The Central Bank will publish daily exchange rates on its official website, with full regulatory details appearing in the Official Gazette. Additional information regarding implementation mechanisms will be released in coming days.