Overview
The Cuban peso, denoted by CUP, is one of two official currencies used in Cuba. The CUP does not have any value outside of Cuba, and is used almost exclusively within the nation. For many years, the United States Dollar (USD) has been used by tourists and for "luxury" items. However, usage of the USD is now being replaced by the CUC, or the Cuban convertible peso. Thus, Cuba has two parallel currencies: the CUP and CUC.
Coins in circulation are 1, 2, 5, 20 & 40 centavos and 1 and 3 pesos. Banknotes in circulation are 1, 3, 5, 10, 20, 50, 100 pesos.
Two parallel currencies
As a result of Cuba's communist economy, US sanctions, and several other factors, Cuba has developed a rather confusing money system: there are two parallel currencies, each of which is appropriate in different circumstances.
Used mainly for buying essential food-stuffs, the main currency for local citizens is the Cuban peso. The CUP, however, has no official international value; thus, to encourage hard currency to enter the economy after the collapse of the Soviet Union (and subsequent contraction of the Cuban economy), the United States dollar was made legal tender in 1993.
For this reason, the USD became the currency associated with more "luxury" goods and services, such as cosmetics, and even non-essential food and drink. Shops selling basics, like fruit and vegetables will only accept the Cuban peso, while "dollar shops" sell the rest. Confusingly, dollars are sometimes referred to colloquially as "pesos", with which currency is meant being understood from the context.
Government efforts to lower subsidies to unprofitable enterprises and to shrink the money supply caused the value of the peso to rise from 120 to the US dollar in the summer of 1994 to 21 to the dollar by the end of 1999.
On October 25, 2004, President Fidel Castro announced that the US dollar would be removed from circulation in Cuba, in response to renewed sanctions enacted by the US government. The Cuban convertible peso (informally, the chavito) was its replacement, and residents of Cuba were given until November 8, 2004 to exchange their existing US currency (though this deadline was later extended to November 14). After that date, it remains legal to hold and exchange US dollars, but there is a 10% commission, or surcharge, imposed during the exchange. There is no surcharge for converting any other foreign currency to the convertible pesos.
This is part of a wider move to encourage currency from other parts of the world, particularly Europe, into Cuba, as well as granting more "financial independence" from the US. The surcharge on US dollars means tourists are encouraged to bring European currencies instead, and the main tourist areas now also accept euros in exchange for goods. One problem that the Cuban government is keen to play down, is that Cuban exiles in the US will now find it harder to send money to their relatives who are still in Cuba; the government hopes that they will simply send these remittances in an alternative currency, such as Canadian dollars.
Travel Notes
Cuba does not have any ATM machines; however, you can get cash off your credit card at the following location. Moreover, this office provides other credit card services for those who need them.
Hotel Habana Libre Trip
Calle 23, esquina M
Plaza
La Habana
You can use any type of credit card (American Express, Visa, Mastercard, Discovery, JCB, Banamex, Bancomer, Carnet, Diners Club International, etc.) or travelers check in Cuba, providing it is not issued on a US bank. The same is true for traveler's checks.
All foreigners, when visiting Cuba, can import money freely without limits. The local currency, know as the Peso and accepted nation wide, is issues in various denominations. Coins are issued in 1, 5, 10, 25, and 50 cent denominations. Before departing Cuba all monies not used must be returned to the bank offices located at the international airports.
A large percentage of goods and services throughout Cuba are priced in US dollars. This is particularly true in tourist centers, and where services are offered for international travelers. Other currencies are also accepted include those of Canada, France, Germany, Finland, Mexico, Japan, Spain, Italy, Suizerland, Sweden, Holland, Portugal, Austria, and Belgium.
| Moody's Rating |
| Caa1 |
| S&P Rating |
| N/A |
|
|
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets. |
What does it look like?
Prominent Figures
President of the Council of State: Castro Ruz, Fidel
First Vice President of the Council of State: Castro Ruz, Raul, Gen.
President, Central Bank of Cuba: Soberon Valdes, Francisco
Key Economic Factors
Economic Overview: The government of Cuba continues to balance its need to loosen the economy and its desire for firm political control. It has undertaken limited reforms to increase enterprise efficiency and alleviate scarcity of food, consumer goods and services. A major feature of the Cuban economy is the striking dichotomy between efficient export enclaves and inefficient domestic sectors. The average standard of living in Cuba remains lower than before the 1990s depression (which was caused by loss of Soviet aid and domestic inefficiencies). In 2004, the government was able to strengthen its control over dollars coming into the economy from tourism, remittances and trade.
Key Industries: Sugar, petroleum, tobacco, construction, nickel, steel, cement, agricultural machinery and pharmaceuticals.
Agricultural Products: Sugar, tobacco, citrus, coffee, rice, potatoes, beans and livestock.
Export Commodities: Sugar, nickel, tobacco, fish, medical products, citrus and coffee.
Import Commodities: Petroleum, food, machinery and equipment, and chemicals.
Have additions or corrections to this material? 
