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Cuba Currency

In 1961, after the revolution, there was the demonetization of money in socialist Cuba. All foreign currencies were expropriated and only $10,000 per family was exchanged with $1,200 and the remaining balance in a bank account.


In the 1993 Cuba live the dollarization and currency substitution. The USD was brought in the country by investors and Cubans living abroad. Poverty and scarcity of money in Cuba brought the people to deal with USD and other foreign currencies their money having been depreciated and therefore bearing no value on the international market. Holding foreign money was more profitable to the Cuban as articles were bought and sold on the black market with foreign currencies.


By August 13 1993, the state legalized the use of foreign currencies in businesses and at a later opened it to the whole Cuban population. The government thought that it would be boost the economic condition of the country. However the inflow of foreign currency could not back up the funding of the Soviet Union.
The Cubans were afraid to deposit their foreign money and savings in the banks out of fear of confiscation of the socialist government.


Four different currencies circulated in Cuba before 2004, the last one being the Euro. November 2004 saw another picture in the Cuban currency with the Convertible Cuban pesos and Cuban pesos became the only money accepted. The Cuban pesos were limited to the streets transaction like drinks, food, public transports and second hand materials. All the foreign currencies the Euro and dollars became chargeable and were no more in free circulation on the Cuban market. The exchange of the USD was charged with 10 % tax to both nationals and foreigners. In 2005, all the currencies were charged with 8 % tax. The USD became then 18% chargeable tax (that is 10 % of 2004 plus 8% applied to all foreign currencies).


80.42 CUC= 100 USD
100 CUC = 24 Cuban pesos
The exchange rate is according to the international monetary market.
CUC are available at the airport and various places in Cuba namely at CADECAs, the Official exchange houses or any local bank.
In Cuba, all business establishments deal with the CUC. In tourist resorts and beaches, Euros are still accepted.


All credit cards except the United States ones are not accepted in Cuba and they can be cashed at ATMs.
No fees are charges when exchanging CUC to USD. It should be stressed that Cuban earning and dealing with foreign currencies are better off that the professionals. For example the low skill worker in the tourist resort is wealthier than the teacher or doctor.
By late 1999, 1 USD= I CUC or $1 pesos on the official rate and on the black market, the $ 21pesos= 1USD.

USD= US Dollar
CUC= Convertible Cuban Pesos or Cuban Dollar

 



 

 

 

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