Can someone explain Cuba's two-currency system and the consequences for foreigners?
I know there is the national peso (CUP) and the convertible peso (CUC) and that 1 CUC = 1 USD = 25 CUP.
Why is there this difference? Is it to keep Cuban money from leaving the country?
What are the consequences for visitors? Does it make it difficult or impossible to buy certain local goods? I know there is a surcharge for converting USD and that you can only convert in CADECAs (found in major cities). Is it true that goods are cheaper in national pesos? If so, should I try to get some CUP? (I'm planning on staying for a few months)
Best Answer
You've got it more or less backwards.
The restrictions are essentially aimed at controlling the rate at which hard currency (i.e. USD / EUR) leaves the country, so goods which are imported are only available with CUC. Therefore there is high demand among Cubans for CUC. As a rule of thumb, if you manage to get sufficiently off the beaten track that people are selling goods in CUP, they will be more than happy to take your CUC and give you change in CUP. The only goods which you're likely to have any issues buying would be ones which are sold in official shops to people with a ration book.
As for goods being cheaper in CUP: everyone informally agrees on the exchange rate between CUC and CUP, so no.
For what it's worth, Cuba mints its own CUC coins (presumably because tourists bring notes and leave their coins at home), which are quite pretty. If you're into collecting coins from countries you visit, it's worth trying to get a set of CUC and a set of CUP. I even got lucky and picked up a 1989 Intur coin and a commemorative 1 CUP.
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What are the two Cuban currencies?
Banco Central de Cuba (Central Bank of Cuba) 200-, 500-, and 1000-peso notes were (re-)introduced in 2015. Banknotes currently in circulation are 1, 3, 5, 10, 20, 50, 100, 200, 500, and 1000 pesos. This banknote series is the only valid currency after the 2021 monetary unification when the convertible peso was retired.Why are there 2 currencies in Cuba?
Then, in 2004, the government banned their use in shops and other businesses and replaced them with a second Cuban currency: convertible pesos (CUC). The government implemented this system in order to counteract hyperinflation of its Cuban peso (CUP), protect a separate domestic economy, and regain monetary stability.What is the difference between the Cuban peso and the Cuban convertible peso?
The Cuban Convertible Peso (CUC) is one of two currencies used in Cuba. The other currency is simply called the Cuban Peso and has been in limited use since 1994. Retail stores and other businesses mainly use the Cuban Convertible Peso. The Convertible Peso can only be exchanged in Cuba itself.How does currency work in Cuba?
The national currency in Cuba is the Cuban Peso (CUP). One Cuban Peso is equivalent to 100 cents. There are bills of 1, 3, 5, 10, 10, 20, 20, 50, 100, 200, 500 and 1000 pesos, as well as fractional coins of 1, 3 and 5 pesos and 5 and 20 cents.Cuba History in 5 Minutes
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