Cuba / Currency/Credit Cards

The official currency of Cuba is the peso which is divided into 100 centavos. The rate of exchange is US$1= 26 pesos. The $ symbol is also used for the peso.

For the purposes of visitors, the currency is the convertible peso (CUC), which was introduced in 1995 as a tourist currency. Its value is pegged to the US dollar at CUC1=US$1.08.

The best places to change your currency to convertible pesos are casas de cambio, known locally as cadecas. These tend to be quicker and simpler than using banks. It may also be useful to carry a small amount of standard pesos when venturing outside the tourist areas as they can be used at fruit stalls, small shops and for simple public transport. Do not change too much money into pesos as it will not be possible to change them back again.

In 1993 the Cuban Government made it legal for its people to possess and use the US dollar. From then until 2004, the dollar became a major currency. To capture the currency coming into the island through tourism and remittances the government set up ‘dollar stores’ throughout Cuba that sold luxury food, household, and clothing items. As such, a gap in the standard of living developed between those with access to US dollars and those without. Jobs in the tourism sector that earned salaries and tips in dollars became highly desirable.

However, in 2004 Castro announced a ban on commercial transactions using the dollar citing the need to retaliate against further US sanctions. US dollars are no longer accepted in shops and other businesses, and tourists and Cubans exchanging dollars have to pay a 10% commission. Many individuals now continue to accept payment in the much sought after currency, which is not illegal, but in general everything previously payable in hard currency is now payable in the Cuban convertible peso. Euros are increasingly being accepted at the larger tourist resorts. There is currently no black market in currency in Cuba as there has been in past years.