Cuban peso

A Cuban 3-Peso bill depicting Che Guevara.

The peso (ISO 4217 code: CUP) is one of two official currencies in use in Cuba, the other being the Cuban convertible peso (CUC). Cuban currency has no official value outside the country. The Cuban peso (CUP)is used for staples and non-luxury products. The Cuban convertible peso (CUC) is currently pegged at $1.08 USD, and is used for luxury products and services. As of March 2006, one Cuban convertible peso equals approximately 26.5 Cuban pesos.

History

The first issue of the Cuban peso was a series of banknotes in 1857. The currency continued to be issued only in paper form until 1915, when the first coins were issued.

Circulating Currency

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.

Note: Coin 40 centavos stop circulating about July 2004 and is not accepted to make payments anymore.

Two parallel currencies

The main currency for local citizens, used mainly for buying essential products such as food-stuffs, is the Cuban peso. This currency has no official international value, so to encourage hard currency to enter the economy after the collapse of the Soviet Union, and the subsequent contraction of the Cuban economy, the US dollar was made legal tender in 1993.

The dollar became the currency used to purchase some non-essential goods and services, such as cosmetics, and even non-staple kind of food and drink. Cuban state workers receive a portion of their wages in Cuban convertible peso, the rest in the Cuban peso. Shops selling basics, like fruit and vegetables, generally 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. (Note: In 2004, the Cuban government withdrew the U.S. dollar from circulation, citing the need to retaliate against further U.S. sanctions).

External links

• Banco Central de Cuba - in English.
• Cuba Currency Guide - One country, two currencies.
• Cuban Bank Notes