Currency of Cuba

(Cuba Twitter)-Peso (ISO 4217 code: CUP, sometimes called the "national peso" or in Spanish moneda nacional) is one of two official currencies in use in Cuba, the other being the convertible peso (ISO 4217 code: CUC, occasionally referred to as "dollar" in spoken language). It is subdivided into 100 centavos.

Cuban state workers receive a portion of their wages in convertible pesos, the rest in national pesos. Shops selling basics, like fruit and vegetables, generally accept only the normal peso, while "dollar shops" sell the rest. The word "pesos" may refer to both non-convertible and convertible money. Cuban convertible pesos are 25 times more valuable, but this does not completely eliminate the confusion for tourists: since goods bought in national pesos have controlled prices, tourists are sometimes confused by prices perceived as "too cheap.

The CUP and the CUC

The peso (CUP) is used by tourists only for staple and non-luxury products. However, local citizens are paid most of their wages in pesos and pay everyday expenses in CUP. For some accounting purposes, the exchange rate is set at 1 CUP = 1 CUC. However, for practical purposes, the exchange rate is that applied by the Cuban banks and Cadecas (exchange bureaux). From March 18, 2005, that rate has been set at 1:24 when exchanging CUC for CUP and 25:1 when going from CUP to CUC. The convertible peso, used for luxury products and services, was for several years pegged at US$1.08. All other exchanges rates are set in relation to the CUC. In March 2011 the government announced it would devalue the CUC to US$1.00, without changing the 10% tax on exchange with the US dollar.