Money | Varadero, Cuba

Money in Cuba

After operating with a dual currency system – the Cuban peso CUP and the Cuban convertible peso CUC – since the early 1990s, in January 2021 Cuba adopted the CUP as its sole currency, leading to the abolition of the CUC.

CUBA NATIONAL CURRENCY: CUBAN PESO (CUP)

$1.00 US = 120 CUP* (since August 4, 2022)
Check the "Banco Central de Cuba" website for other currencies and up-to-date exchange rates: www.bc.gob.cu

*What happened on August 4, 2002
The Cuban government announced it will begin purchasing US dollars (and other freely convertible currencies: EUR, CAD, GBP, MXN, etc.) from individuals at nearly five times the going rate in an effort to undercut the informal (black) money market. The state-run banking system set a new rate of 120 pesos to the US dollar, compared to the previous official fixed rate of 24 pesos, and ~115-120 pesos on the informal/black market. The 24:1 rate is still applicable for businesses and international transactions.

Denominations of Cuban Peso (CUP)
Bills : 1, 3, 5, 10, 20, 50, 100, 200, 500, and 1000 pesos
Coins : 1, 3 and 5 pesos, 5 and 20 centavos

You can only get Cuban Pesos in Cuba
The CUP is a closed currency NOT traded internationally, and their import and export is prohibited, so they CANNOT be bought in advance outside Cuba.

CUCs (Cuban Convertible pesos) are now useless
If you have leftover CUCs from a previous trip, you can only keep them as souvenirs. CUCs can no longer be converted to CUP or any hard currency since December 31th, 2021.

Price display
Sometimes prices are displayed in CUP, however in most hotels and many tourist businesses, prices are often displayed in US dollars as a reference, even though US dollars cannot in fact be used in any of the state-owned facilities. Other foreign currencies, called MLC: Moneda Libremente Convertible (Freely Convertible Currency), can however be used when paying in cash; the appropriate exchange rate will be applied. The most commonly accepted currencies are: EUR, CAD and GBP.

MONEY EXCHANGE

Foreign currencies, referred as MLC: Moneda Libremente Convertible (Freely Convertible Currency), can be exchanged to CUP (at the official government rate) at banks, CADECAs (exchange houses), airports, hotels, and shopping malls. The following currencies can be exchanged in Cuba: EUR*, USD*, CAD*, GBP*, CHF, MXN, JPY, DKK, NOK, SEK (* Preferred currencies). Conversion fee is 2%, except for USD at 8% (meaning that you’ll get about 110 CUP to the USD). More on money exchange here

WHAT IS THE BEST CURRENCY TO USE IN CUBA

As the Cuban Peso is the only official currency, in theory, you should be able to pay for anything with CUP, but in reality this is NOT always the case. Any Cuban and private business would usually be glad to accept (and often strongly prefer) foreign currencies. Some state-run businesses also accept payment in foreign currencies except USD. US dollars can be exchanged for CUPs and used for tipping and in some private businesses, but never in state-run places.

Therefore you probably won’t need to buy a lot of Cuban Pesos (if any), especially if you are staying in an all-inclusive resort; and considering also that credit cards are accepted in more and more places related to the tourist sector. And note that some state-run places (including hotels and resorts, car hire, state-owned bars, several grocery stores, and medical facilities will only take card payment, not cash. Excursions can also be paid with a credit card. Learn more about Credit/Debit cards here. But outside of the state sector, Cuba is still primarily a cash economy.

TIPPING

Tips are a big part of the income of the staff in hotels, restaurants and tourist services, be generous! Foreign currencies are preferred, but tipping in Cuban Pesos (CUP) is fine too. EUR, CAD and USD are usually the most coveted currencies. Cubans can use these hard currencies to load their MLC card, more on MLC store below.

Tipping with foreign coins: Coinage cannot be exchange in Cuba so Cubans will have to approach tourists and ask to trade the coins they received for paper money. So if you tip with foreign coins, it will be greatly appreciated if you can take coins back for them from time to time, so be sure to bring plenty of smaller bills (5, 10, 20) as well. Try to bring back home as many coins as you brought into the country, or even more!. Tip with paper bills as often as you can.

MLC STORES (aka dollar stores or Tiendas MLC)

They replace the former CUC stores. Better quality goods and more variety are usually found in them. In these state-run shops prices are set in US dollars (actually in MLCs, 1 MLC = 1 USD) and customers (Cubans and foreigners) can only pay with a credit card in international currencies (either a prepaid MLC cards or an international credit cards), they do not take cash. More information on using credit cards here.

SOME OTHER TIPS AND RECOMMENDATIONS

Money in all-inclusive resorts
You're most likely be able to use your credit card to pay for your hotel charges (massages, late check-out, etc.), excursions, car/scooter rentals and purchases in the hotel shops. Tip the hotel staff in foreign currency (preferably EUR, CAD, USD).

Independent travelers
Having some CUPs will come in handy for covering small expenses at local markets, state-run facilities, street food, bus fare, etc. In private businesses related to tourism (casas particulares, paladares, private taxis, private guides, etc.), check with them the currency they prefer.

Bring banknotes in good condition
Bills with tears, rips or markings are not accepted, so make sure to bring notes in GOOD condition. More on Where to exchange money here. Help the Cubans by exchanging their damaged or overworn foreign bills for better ones when you can.

Bring plenty of cash (preferably small bills)
Don’t just rely on being able to use ATMs to get CUPs. Sometimes they run out of money or are out of order, or simply won't accept your card for reasons unknown.

Check exchange rate at ATM machines
Some ATMs may not be offering the new exchange rate of 120CUP=1USD, verify before accepting the transaction.

Using foreign currencies or Cuban Pesos?
Private businesses (guesthouses, bars, private restaurants, small shops) will most likely prefer payment in foreign currencies (preferably EUR, CAD or USD). In state-run places it might be better to pay with Cuban Pesos if the conversion rate 24CUP=1USD is applied (instead of the 120CUP=1USD) when paying with foreign currencies.

Bringing US dollars?
You can, and you should if bringing another currency is a hassle for you. USD is valuable in the informal market and for tipping; but don't forget that you cannot use USD in state-owned facilities and you will incur an 8% fee when converting your USDs to CUPs in official exchange facilities, higher than the standard 2% for other foreign currencies

Money in Cuban airports when leaving the country
Euros and US or Canadian dollars can be used for cash payments in shops or cafes in the departure area after passing immigration, as well as credit cards (not issued by or affiliated with a US financial institution), you cannot use CUPs past the security checkpoint. So if you have any CUPs left, be sure to redeem them before leaving for the airport.

Everything related to money can change quickly and often in Cuba, always check the current situation, rules and regulations before you go.

HISTORY OF THE DUAL-CURRENCY SYSTEM

Between 1994 and 2020, Cuba adopted a two-currency system, both called pesos. One is the Cuban Peso (CUP) and the other is the Cuban Convertible Peso (CUC), the latter was pegged to the US dollar at par. On December 10, 2020, the Cuban government announced the unification of the two currencies resulting in the abolition of the CUC, starting January 1, 2021.

The Convertible Peso (CUC) closed currency was first introduced in 1994, but the US Dollar still remained the preferred currency for tourists until November 8, 2004, when the US dollar ceased to be accepted on the island. Since then the CUC became the “tourist currency” to substitute the US Dollar (USD). At first (1994 to early 2005), the CUC was pegged to the USD at 1:1. In April 2005, its value was increase to 1.08 USD, and then in March 2011 the Central Bank of Cuba devaluated the CUC by 8% against all foreign currencies, so this measure now pegs again the CUC at 1 to 1 with the US Dollar. And later, in October 2013, the Cuban government was announcing its intention to eliminate their dual currency system (CUC and CUP). It was a little over 7 years later, on December 10, 2020, that President Diaz-Canel finally announced the unification of the two currencies resulting in the removal of the CUC in favor of the CUP, starting January 1, 2021.

Where to exchange currencies Credit cards / Debit cards