Money and Currency Exchange

CUC = Cuban Convertible Peso.
CUP = Peso Cubano "Moneda Nacional"

1 CUC = 24 CUP

1 CUC = 1.14 Canadian dollars (as at August 21, 2007)

Currency calculator here: http://coinmill.com/CUC_calculator.html

There are two currencies in Cuba, and there exists a virtual currency apartheid between the tourists who will pay for most goods and services in CUC’s, and the Cubans who will pay for most basic goods and services in CUP’s. Some services such as entrance to events, museums, or even ice cream at Copellia’s are much cheaper for Cubans in CUP’s than for tourists.

The official currency in Cuba is Cuban Peso (CUP), divided into 100 centavos (cents). Notes can be of 1, 3, 5, 10, 20, 50 and 100 pesos. Coins can be of 1, 5 and 20 centavos, and there are others of 1 and 3 pesos.

The Cuban Convertible Peso (CUC) was introduced by Cuban financial authorities to take foreign currencies out of circulation, offering an alternative that is somewhat equal to US dollars. It replaces the dollar as currency where previously dollars were quoted in places such as hotels, restaurants and so called 'dollar shops', and is the new 'tourist' currency. US Dollars were widely accepted throughout the island, but since 8 November 2004 US Dollars are no longer accepted, and a 10% commission is charged to exchange them. The national banks have since introduced the Peso Convertible (CUC) in substitution of foreign currencies, which is almost equal in value to the US Dollar.

Travelers are advised to exchange money only at official exchange bureau’s or banks to avoid scams confusing the two currencies. Never exchange money using street hustlers who will offer you a great deal. These are almost without exception scams - there’s no deal to be had and you run a big risk of having your money stolen.

There is no prohibition on your use of either currency. As a tourist, most of the purchases that you are likely to make will be priced in CUC. There is no "special deal" either way.

Money can be exchanged at:

Bank or CADECA Money Exchanges

Airports

Hotels (poor conversion rates)

Cuba is like most other foreign destinations. You bring a major currency, then exchange it into the local currency to make purchases while you’re there. Cuban currency is NOT traded internationally, so you can’t buy it in advance. You buy it when you arrive in Cuba.

Here’s a good site with photos of all the different bank notes and currency:
http://www.webhavana.com/main.php?lang=en&page=cuba_currency.php

Accepted Foreign Currency: Canadian Dollars (CAD), Swiss Francs (CHF), Mexican Pesos (MXN), Japanese Yen (JPY), British Pound Sterling (GBP) and the Euro (EUR) are all accepted. Exchange rate is based on 1 Cuban Convertible Peso being equal to $1.08 US Dollars.

Always bring new(ish) bank notes, with no rips, tears or markings. All foreign coins are useless, so don't bother bringing any (and that includes all you Canadians with your Loonies and Toonies!)

CUP can be purchased at a bank or Cadeca. The latter are universally present - except when you want one. The conventional advice is to exchange CUC 5.00 to 10.00. I find that I use lots of them - to the disdain of at least one Cuban I know who has CUC tastes. Changing 20 CUC is plenty.

CUP is most useful for street purchases, finger food, bus fares, and purchases of fresh fruit & vegetables at agromercados. Use of either has nothing to do with linguistic ability. It's as easy to be "gypped" in either currency. If in doubt, tentatively offer a note of about what you think the item should cost. Your observation of the vendor will / should tell you instantly if you have made the right move or not.

I think it wise to change about $1 per day into pesos, so that you can pay the Cuban price of $1 MN (Moneda Nacional, or peso…4 cents), for what tourists often have to pay $1 CUC.

Bottom line: You CAN eat in Cuba using only CUP (pesos, or moneda nacional). You CANNOT buy lodging with CUP. For that you must have CUC (chavitas, or pesos convertibles). Transportation varies. The Viazul bus, usually Astro buses, trains, airport taxis, and most other taxis charge CUC. Urban buses and ferries across the harbor charge CUP.

The way to avoid getting ripped off is simple. From the time you do your first currency exchange in the airport, have a small calculator and figure out the correct change, count it carefully before leaving the window, and make sure it's right. ALWAYS ask for the printed receipt. If it's not right, ask (politely) for an explanation/correction. Ripping off tourists during money exchange transactions is a VERY common occurrence.

Do this for everything you purchase in CUC - maps at the map table, bills in restaurants and bars, gas stations, everywhere. Find out the price BEFOREHAND (not to bargain but just to know what it should be), and make sure that what you're charged is what it should be. Over-charging and/or wrong change tends to occur only with hard-currency transactions (CUC).
Overcharging is not common in casas. There it's more a matter of being clear on what the cost is to start with, and if you're taking meals there, what's included. For example, bottled beverages would NEVER be included in the price of a meal. Homemade beverages like coffee and lemonade should be--but ask to be sure. This (what's included) is a more serious problem in restaurants, where you may order a meal and assume that the roll and pat of butter comes with it--only to discover, when you get the bill, that you are being charged 1 CUC extra for each. So--if doesn't say on the menu that something's included--it's not.

As your Spanish is limited, I would recommend that you also carry a small pad, and when you're not absolutely clear on the price, ask the person you're dealing with to write it down.

Re getting your hands on some CUP, I have usually been able to change 1-2 CUC for CUP with the rest room attendant at the airport. I have never been charged CUC rather than CUP by farmers and street vendors. Cubans doing business in CUP have been, in my experience, scrupulously honest.

Do try to avoid bargaining (other than taxis and large purchases). It is very uncool -not to mention downright obnoxious - for someone who is on vacation and so much affluent than the locals (in Cuba or any other Third World country) to go around trying to knock working people down on the price of whatever goods or services they're offering. If you must bargain in order to enjoy your vacation, go into Hotel Nacional or one of the other glitzy hotels and bargain there.

Things you can pay for in CUP:

Street food
Ice cream at Coppelia (highly recommended)
Local buses

The longer you spend in Cuba, the easier it will become for you to 'sense' when to offer payment in CUC and when in CUP. Anywhere new(ish) and mainly frequented by tourists you need CUC. Anywhere grubby and exclusively frequented by Cubans you can get away with CUP. Bear in mind that towns where not many tourists go (Santa Clara springs to mind) it'll be relatively easy to find CUP places. It's also not widely known that the two currencies are completely interchangeable, so if you're buying something that costs for example CUP24 you can pay with a CUC1 note.

I change enough at the Airport to get to my hotel plus a bit for other things.

The next day I go to the nearest bank and change what I think I will need for the next 5-7 days. Do not change it all, unless you are like me and keep returning. Even then the exchange rate keeps getting better for me, so I don’t want too many CUC's left un-spent.

I return to Cuba often so I try to have enough CUC's left at the end of my trip to pay the taxi, Airport tax, Rum and cigars at the duty free and a bit for food and drink while I'm waiting for my flight. I would also make sure I have enough so the next time I get to Cuba, I can skip the Airport money change and get to my hotel.

When I change my money, if they give me a lot of $50's, I just change them them at the Hotel desk.

Some additional tips:

1. Service Charges: Don’t listen to a crooked teller. There are no service charges. (The mark-up on the exchange rate is very high in Cuba – that’s where they make their money – not on service charges.)

2.) Airport Money Exchange: Rates are no worse than exchanging at a bank or CADECA Money Exchange. Airport Exchange Offices are supposed to always be open when a flight arrives.

3.) Street Money Exchange: Lots of Cubans working money exchange scams, including the flight check-in personnel at the airport. It goes without saying that any traveler is an idiot to exchange money anywhere except at a proper institution, or between trusted friends. (And as noted above, even at the bank you have to be frigging careful.)

4.) Hotel Money Exchange: Forget about it. Way too expensive, at least in Havana. I assume the all-inclusive resorts would have to be better. The CADECA on Obispo Street in Havana – as with all their other offices I went too – were all open to 10:00pm, so it’s not a big deal to get money.

5.) Counterfeit Money: Counterfeit Convertible Pesos are quite common now, and not just in Havana. To familiarize yourself with how the money looks, and the security features, have a look here: http://www.bc.gov.cu/English/convertible_bills.asp

6.) ATMs: Not widely available, especially outside tourist areas. If your Canadian cash/debit card doesn't have a VISA symbol on it, then it will probably not work in Cuba. Cirus and Plus won’t work. Maestro and Cirrus is for interbank transactions on ATMs and won't work in Cuba - you need a card with a Visa/MasterCard logo. I look at ATMs as too much hassle, but some travelers like them. (Hate to think what you'd do if an ATM swallowed your card, which has been known to happen...)

7.) Credit Cards: Easy to get cash advances with any non-US issued credit card. Bring your passport for I.D. Getting a cash advance on your credit card ends up costing almost the very same - maybe even a bit less - than exchanging cash. (Remember to load up your credit card with cash before you leave home, so you're not hit with crazy interests rates...)

8.) Traveler’s Cheques: Personally, I don’t see the point. It costs a commission to cash them (anywhere from 3% to a whopping 6%)… they’re not always easy to cash outside of tourist areas… it’s very hit-and-miss if you can cash American based TCs like American Express… and if you lose them you can’t get them replaced while you’re in Cuba. They seem like a lot of trouble for very little convenience or security.

9.) Getting rid of your Cuban Convertible Pesos: You can exchange your left-over Pesos at the airport when you leave, but they screw you on exchange, and many times they’re short of foreign currency. Sometimes the only currency available is US Dollars, which they’ll make a straight exchange on, 1 for 1 with CUC.
A better way to handle it is to budget wisely during the last few days of your trip so you don’t arrive at the airport loaded with useless CUC. (Remember, you need $25 CUC per person for airport departure tax.)
Lastly, if you do have a pile of CUC, check where the Exchange Office is BEFORE you go through to the departures lounge – some airports may only have Exchange Booths before security.