HAVANA – Cuba’s implementation of a new foreign exchange market structure has sparked widespread public discussion and legitimate questions across social media platforms and public forums. In response to growing public inquiries, Central Bank of Cuba Director of Macroeconomic Policy Ian Pedro Carbonell Karel has provided detailed explanations regarding the country’s unconventional monetary approach.
The temporary coexistence of three distinct exchange rates represents a strategic measure designed to simultaneously protect essential goods and services, stimulate foreign currency generation, and regulate monetary flows. This multi-tiered system, contrary to some public perceptions, was never intended as an immediate solution to eliminate Cuba’s informal currency market overnight, but rather as a gradual, progressive mechanism toward eventual exchange rate unification.
Carbonell Karel emphasized that the floating exchange rate concept applied to Segment III allows for dynamic adjustment according to market conditions and economic environment factors, moving away from fixed exchange rate paradigms. This flexibility enables the rate to more accurately reflect economic realities while reducing distortions and diverting currency formation from speculative informal spaces.
The macroeconomic policy director outlined several consumer benefits, including reduced volatility compared to informal alternatives, more stable price formation mechanisms, and enhanced financial security through official channels. As the market consolidates, both individuals and non-state enterprises will be able to conduct foreign currency transactions through regulated financial institutions, diminishing fraud risks and improving consumer protection.
Regarding inflation concerns, Carbonell Karel noted that exchange rate modifications contribute to creating favorable conditions but sustained price stability requires complementary measures including monetary emission containment, increased goods and services supply in national currency, and reduced internal dollarization pressures.
The Central Bank official also addressed specific stakeholder concerns, clarifying that international collaborators and aid workers receive the Segment III official rate for income exchange, while MLC account balances can be converted to Cuban pesos through authorized digital platforms without commercial margins.
This gradualist approach allows economic actors sufficient time to adapt cost structures, pricing models, and investment decisions while developing sustainable economic reactivation mechanisms aligned with Cuba’s unique economic circumstances.