Everything You Need to Know about Cuban Currency

Cuba, the revolutionary island, the abode of colonial architecture, needs no introduction. With its favorable beaches and distinct cultural history, Cuba has long been an attractive destination for travel freaks.

In addition to your tour package, passport, medical insurance, and credit cards, you need some other things to make your trip hassle-free. Do you know what those are? Rental cars and Cuban currency. Now, why am I saying this? Nobody likes to wait for buses or public transport when they have come all the way from their native country to Pearl of the Antilles to have a fun trip. That’s where you can rent a car for traveling to Cuba. And what do you need to rent those stylish rental cars? The answer is Cuban Currency.

Now the question arises: what currency does Cuba use, and does Cuba take American Money?

Well, don't worry. We are here with another Cuba blog to give you insights about the Cuba tourist currency and much more. So, sit back and read this blog post to gain useful information.

 

History of Cuban Currency

The Cuban currency comes with a long legacy. It first came in 1857, replacing the Spanish real, followed by a division in Centavos, which began in 1869. Furthermore, the currency was pegged into the U.S. dollar in 1881.

Now, fast-forwarding to the fall of the Soviet Union, the country adopted the dual currency system. After establishing the dual currency system, Cuba began circulating the Cuban convertible Peso in 1994.

Lastly, the Peso was used for local commerce, especially to purchase staples and non-luxury goods; on the other hand, the Cuban Convertible Peso was used in tourism and for making luxury purchases. As for the convertible Peso was tied to the U.S. dollar, this currency was generally used by the Americans in Cuba.

 

What is the Currency of Cuba?

The national currency in Cuba is the Cuban Peso (CUP). At the start of 2021, Cuba changed its monetary policy and unified the Cuban currency. Now, the only Cuban official currency used is the Cuban Peso. Even though it simplified the monetary situation, it led to rapid inflation.

Now, let’s talk of various Cuban currencies in detail:

The Cuban Peso (CUP): This is the national currency used for purchasing food and doing groceries in local stores.

Moneda Libremente Convertible (MLC): This is a digital currency that is used to buy imported items such as electronics and food items.

Cuban Convertible Peso (CUC): This currency has been phased out since January 1, 2021. It was Cuba’s one of the two prominently used official currencies.

 

What Currency You Should Bring to Cuba?

Well, the answer to this question is a bit tricky.

The official exchange rate of the peso is much lower as compared to the rate you’ll get from informal money changes.

So, what currency should I bring to Cuba?

The answer is to bring foreign currency, in cash. Additionally, Euros and US Dollars are the best currencies to bring to Cuba, especially when you are traveling. You can use the CUPs (Cuban Peso) to cover your trip to Cuba costs. In case you are traveling to Cuba, you must use the Cuban Peso but keep the American dollar as a backup option as well. It is an easier mode of transaction.

 

Can You Use the US Dollar in Cuba?

Yes, ofcourse, you can bring the U.S. dollars here. It is a famous tourist currency in Cuba.

They are popular for making small purchases as well as giving tips in Cuba. It can be exchanged with Cuban Pesos at certain banks and CADECA offices. It can also be exchanged at airports, hotels, or in any informal market.

However, keep in mind that you cannot use the US dollar in any government-owned facility in Cuba. Lastly, the debit and credit cards issued by the US banks are invalid here as well.

 

How to Exchange Cuban Currency & Rate Applicable

You can't get Cuban Pesos anywhere, unlike other countries. You will have to wait until you arrive and exchange your money, as exchanging money in Cuba is easy as well as difficult. Hence, you must surely bring your cash with you and exchange it here itself.

Furthermore, you will get the official money changer at the airport, where the exchange rate is less. Lastly, inquire about the informal money changers from your host wherever you are staying.

 

Exchange Rate Set by Government

The Banco Central de Cuba sets the official exchange rate, and as of August 4, 2022, the government has set the foreign currency exchange rate at 120CUP = 1 USD. When you are looking to change the USD, you will have to pay an extra 8% conversion fee; hence the effective rate is 110CUP = 1 USD.

 

Exchange Rate for Locals & Tourists

With the rise in Cuban migrants, the price of foreign currencies has increased rapidly. This made the Cuban government buy foreign currencies at the same rate in 2022. Henceforth, they purchase foreign currencies from the residents of Cuba and visitors at four times the official exchange rate.

 

Final Thoughts

The Cuban currency system is complex, but it’s not difficult to comprehend. You can bring as much cash as possible and make your trip hassle-free. The banking and standing before the atm can be chaotic.

Hence, go through the above-given information thoroughly before setting foot on the Cuban island to experience the best of your travel.