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Introduction to Cuban Convertible Peso

The Cuban Convertible Peso (CUC) is one of the two official currencies of Cuba, introduced in 1994 as part of economic reforms aimed at attracting tourism and foreign investment. The CUC is primarily used in transactions with foreigners and in tourist areas.

On November 8, 2004, the U.S. dollar was no longer accepted in Cuban retail stores, making the CUC the only currency circulating in many Cuban businesses. Initially pegged at a value of 1 CUC to 1 USD, its value rose to 1.08 USD in April 2005 but returned to 1.00 USD by 2011.

The Cuban Convertible Peso is a fixed-rate currency and was the twelfth most valuable currency in the world, being the highest valued peso in the currency market. 

On October 22, 2013, the CUC was announced to be abolished. By December 10, 2020, Cuba announced the unification of its currency, effective January 1, 2021. Since then, the CUC has not been accepted by Cuban businesses and can only be exchanged at banks, CADECA, or some stores for a period of six months.

On June 15, 2021, it was announced that the CUC could still be exchanged at banks for another six months, but no stores accepted the Cuban Convertible Peso after July 1. The final day to exchange CUC was December 30, 2021.

History of the Cuban Convertible Peso

• 1981 - 1989: Cuba used coins and INTUR checks, with foreign currencies convertible to these checks instead of using national currency.

• From 1985: Cuba issued various foreign currency certificates.

• Special Period: The Cuban government allowed ownership of U.S. dollars and began selling goods and services in U.S. dollars.

• 1994: The Cuban Convertible Peso was introduced alongside the U.S. dollar, convertible to the Cuban Peso (CUP) at a fixed rate of 1:1.

• November 8, 2004: The U.S. dollar was withdrawn from circulation in Cuba, transitioning to the Cuban Convertible Peso. A 10% surcharge was applied for converting U.S. dollars to CUC.

• 2014: State-owned stores priced goods in both CUC and CUP, accepting payments in both currencies. The 10% surcharge was removed in July 2020.

• End of 2019: Economic difficulties and shortages led to the establishment of stores accepting only U.S. dollars, further decreasing the value of CUC in unofficial exchanges below 1 USD.

Denominations of the Cuban Convertible Peso

The Cuban Convertible Peso was issued in both coin and banknote forms, with the following denominations:

Cuban Convertible Peso Coins: 

• In 1994, Cuban Convertible Peso Coins were introduced in denominations of 5, 10, 25, and 50 centavos, and 1 peso

• In 1999, a rare 5 peso coin was introduced

• In 2000, 1 centavo coin was introduced

Cuban Convertible Peso Banknotes: 

• In 1994, Cuban Convertible Peso Banknotes were first introduced with denominations of 1, 3, 5, 10, 20, 50, and 100 pesos

• On December 18, 2006, a new series was issued with themes of the history and achievements of socialism.

Exchange Rate of CUC to USD

• When first launched in 1994, the CUC was pegged at 1.00 USD. By 2005, the rate increased to 1.08 USD. 

• In 2011, it returned to a 1:1 ratio. 

• Since late 2019, the CUC depreciated, trading below 1.00 USD in unofficial exchanges.

• Starting in 2005, U.S. currency was exchanged in Cuba with a 10% tax and a commission. This tax did not apply to other currencies. 

• As of June 2020, the 10% tax was removed.

Although the Cuban Convertible Peso has not been in use since 2021 as part of a move towards a simpler currency system, it contributed significantly to the economic development of Cuba during its period of circulation.