A Brief Cuban Currency History

Here’s a short history of the Cuban Currency in recent times.  It’s not going to help your trip to Cuba or make any difference to it, but it’s a good backgrounder on the the messy situation that is Cuban currency.  The Cuban Peso (or CUP) was created as Cuba’s currency by Ernesto “Che” Guevara, who was the first president of the country’s Central Bank in the post-revolution period.  The Cuban Peso – aka the CUP.

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Cuba’s currency has changed a lot in recent times. Probably the biggest change came in 2021 when the Cuban government finally ended the dual currency system that had been in place since 1994. The Cuban peso was devalued for the first time since Castro led the revolution in 1959.  The big changes in the summer of 2022 in the official exchange rates also led to more changes.

Dealing with currency exchange rates in Cuba seems to always be a moving target, and you’d think that all these changes make dealing with money in Cuba easier. Well, sometimes it is, and sometimes, well, it’s not. The single currency came as a bit of a welcome change, albeit with a sting in the tail for Cubanos. The changes in August 2022 were also welcome, and the most recent changes in exchange rates for Cuba in 2025 provided yet another positive change.

Cuba’s Currency:  Recent Timeline

Here’s a timeline of the changes in Cuba’s Currency.

• 1993: US Dollars were legalized during the economic crisis after the collapse of the Soviet Union.
• 1994: The CUC (Convertible Peso) was introduced and eventually replaced the US Dollar in circulation.
• 1994–2021: Cuba operated under a dual-currency system (CUP and CUC).
• 2020:  Cuba scraps the 10% surcharge on US Dollars
• January 2021: The CUC was officially withdrawn. Cuba returned to a single-currency system.
• August 2022: The government devalued the Cuban Peso and adjusted the official exchange rate.
• December 2025:  Cuba adds a third Segment for official exchange rates and adopts a “floating exchange rate”.

Cuban Currency in 1993:  Legalising the US Dollar

The Cuban government legalized the use of the US dollar alongside the Cuban peso (CUP) in 1993 to help with stabilization following the collapse of the Soviet Union.  The US dollar was legal tender in Cuba from 1993 until 2004.  The Cuban Peso (CUP) was still used, but only by Cubanos.  The dollar, however, became the most used currency in Cuba during that time, but wait, there’s still more.

Cuban Currency in 1994: the “convertible Cuban Peso – “CUC” was added.

In 1994, the Cuban Government created the “Convertible” Cuban Peso (or CUC) at the same time as banning the use of US dollars in Cuba. CUC gradually replaced the US dollar.  CUC was used for buying items shipped in from abroad, but couldn’t be taken out of the country, although it could be used in the free trade area of Panama. CUCs were pegged at US$1 to the CUC but were exchanged with the public at a rate of 24 to buy and 25 to sell.

Tourists would use CUC, and Cubans would be paid in CUP – and most goods of any use (apart from the rationed food items) were only available in CUC.

And so, Cuba had two currencies in 1994.

The CUP and the CUC were both called the Cuban Peso.  Most tourists in Cuba until January 1, 2021, used CUCs.  Most Cubans received their wages in CUPs, but most goods for sale were only available to be bought in CUC.  This made life very expensive for locals.

Roll forward to 2020, when Cuban banks stopped accepting US dollars from those trying to deposit them, citing US sanctions. As of April 2023, US dollars could again be deposited into Cuban bank accounts.

Cuban Currency Change 2004:  10% surcharge on US Dollars

A 10% tax on (cash) US Dollars was applied in 2004; this was a reaction by Cuba to the US sanctions.  Basically, if you took US Dollars to Cuba, everything cost you 10% more.

Cuban Currency Change July 2020 Cuba scraps the 10% surcharge on US Dollars

The 10% surcharge on US Dollars was scrapped on 20^th July 2020 via Resolution 103/20 issued by the Central Bank of Cuba and published in the Gaceta Oficial de la República de Cuba.  This was in response to the ongoing global pandemic and the challenging economic environment in which Cuba found itself.

Cuban Currency Changes in 2021 – the removal of CUC

In December 2020, the Cuban Government announced that CUC would no longer be a currency and that Cubans would have until the end of June 2021 to trade in their CUCs for CUPs.

They would receive 24 Cuban Pesos (CUPs) for each 1 CUC. 

At the same time, the Cuban Government started to digitalize payments, introducing bank cards for Cubanos, and the ability to pay for things electronically, via phone-based apps. At the same time, they introduced a new digital currency, MLC.

(Sigh, yes, why does it have to be this complicated?)

The withdrawal of CUC started on January 1^st, 2021. 

Cuban Currency Changes in August 2022: 

That official exchange rate (scroll back up to remind yourself) – of 24 CUP to the US$ was set in 1994. 

It was on August 4^th, 2022, that the Cuban Central Bank devalued the Cuban Peso, the CUP, and brought it into line with the rates you could get on the black market.  Now, banks and Cadecas give 120 CUP to the US dollar.

Phew. 

The new rate was available from banks, bureaux de change, and hotels in exchange for hard currency, but it wasn’t the best rate that you could get.

Far from it. Exchanging informally, aka on the street, or with your casa particular, got you MUCH better rates.  Until December 2025.

The Cuban Government devalued the Cuban Peso in August 2022, saying, “Today, there is a high level of foreign currency that is entering the country that is not being captured by the national financial system.”

(i.e., Cubans were being paid by tourists in foreign currency and NOT depositing it in banks. Foreign visitors were exchanging their dollars, pounds, and euros on the street, not with the government.

Cuban Currency Changes in December 2025

On 18^th December 2025, the Cuban Government announced another change.  They were introducing a new floating exchange rate.  In addition to the other two exchange rates in places.  There would not be 3 segments of exchange rates in Cuba.

Why?   “to enable private and state-owned exporting companies and certain other entities to buy foreign currency at “competitive prices.”

The Cuban Central Bank and government were missing out on foreign currency because they were offering significantly worse rates than you could get on the street.  So they decided to add this third rate, the floating rate (you know, like the rest of the world uses as a norm), so that the general public (Cubans and visitors) could sell their foreign currency to banks and Cadeca at a better and much more attractive rate than was previously available.

So, as of 18^th December 2025, there have been THREE official exchange rates in Cuba, each of which applies in different aspects.  Plus, of course, the informal, aka on the street, aka black market exchange rates.

1. The fixed rate of US$1 to CUP24 used for centralized state allocations for goods and services considered essential, such as fuel, medicine, electricity, public transportation, and necessities.
2. The rate of US$1 to CUP120 for “certain entities with the capacity to generate foreign currency, particularly in the tourism sector.”
3. The new floating rate for individuals and non-state management entities. An update to this rate is published every day by Cuba’s Central Bank (BCC).  You can find it here.

The final exchange rate, the floating rate, means that the official rate is MUCH closer to the informal exchange rate, and it’s this one that you will get at Cadecas (whether you use cash or card to obtain Cuban pesos). If you use an ATM, then you’ll get charged at the US$1-CUP120 rate.

Guides to Currency, ATMs, budgeting, and paying for things in Cuba

I’ve got a lot of content here on Cuba’s Best about traveling to Cuba.  And there’s a lot of content about currency, paying for things, and how cash in Cuba works. Here’s the specific detail about that.

• An overview of Cuban Currency in 2026
• Using ATMs in Cuba
• What Currency to Take to Cuba in 2026
• How to send money to Cuba in 2026
• How much money to take to Cuba in 2026
• A brief recent history of the Cuban Currency
• What to do if you run out of cash in Cuba
• Cash v’s Cards in Cuba
• Understanding the Informal Currency Exchange in Cuba.

Final Words on the Recent History of Cuba’s Currency

It’s hard to believe that there has been so much change in the currency of one country, and in recent history, too.  Changes in Cuba aren’t done yet, but it’s an interesting look at what’s changed and the impact that it’s had on traveling to Cuba and living in Cuba.

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