Cuba Currency Explained – Complete Guide
Cuba Currency Currently Acceptable
Cuba Currency system may seem a little confusing to a first time visitor but it’ll be clear to you after you’ve read this easy to understand guide. Two currencies are currently accepted as official means of payment in Cuba:
Cuban Convertible Peso – CUC
Cuban Peso – CUP
That’s it. Only two currencies that you can use in Cuba and as a regular traveler, you need to only concern yourself with one.
The Cuban Convertible Peso (CUC) is a tourist currency in Cuba. It was introduced by the Cuban government to replace the use of foreign currencies throughout Cuba and take them out from circulation. Cuban Convertible Peso is pretty much equal in value to the US dollar and is used to pay for all tourism related services: hotels, restaurants, tours, dollar shops, etc. Cuban Convertible Peso has been the new “tourist currency” since 2004.
Cuban Peso (CUP) is a currency used by Cubans. If you’re an adventurous traveler who likes to wander off the beaten tourist path, you may get to the areas where Cuban Pesos are accepted and you’ll get everything for the price native Cubans pay (aka way, way cheaper).
Some places only accept Cuban Pesos, while other (such as tourism related establishments) only accept Cuban Convertible Pesos.
Use of Foreign Currencies in Cuba
Foreign currencies are no longer accepted in Cuba. Prior to November 2004, as many as four different currencies were used in Cuba which was creating a lot of confusion. On November 8, 2004 the Cuban authorities introduced the Cuban Convertible Peso and eliminated the circulation of foreign currencies throughout the island. November 8, 2004 also marked the beginning of extra measures against the US dollar. It is still possible to exchange the US dollar for Cuban Convertible Peso, but this conversion will bear an extra 10% tax.
Canadian Dollars, Euros and UK Pounds are easily exchangeable in Cuba at an exchange rate applicable for that particular day. No extra tax is applied to exchange from these currencies to a Cuba currency. It is best to budget your travel expenses well to avoid conversions back from Cuban Convertible Peso to Canadian dollar or whatever other currency you use as the exchange rate is not very favorable. It is possible to exchange it back, but not advised.