Cuba Guide
Money
Cuba's national unit of currency is the Cuban peso (CUP), or peso cubano in Spanish; it's referred to also as the national peso, and it's divided into 100 centavos. Banknotes are issued in denominations of 50, 20, 10, 5, 3 and 1. The lowest-value coin is the worthless 1c, followed by the 5c, 20c, 1-peso and 3-peso coins, this last adorned with the face of Che Guevara. Though virtually obsolete, you may still also see the 2c and 40c coins.
Whilst Cuban citizens are paid in national pesos, the currency used by the vast majority of foreign visitors is the convertible peso (CUC), or in Spanish the peso convertible, divided into centavos and, like the national peso, completely worthless outside of Cuba. Introduced in 1995, this unit of currency was previously interchangeable with the US dollar until, in late 2004, the Cuban Government declared that the dollar was no longer a valid currency on the island and whacked a hefty 10 percent tax on exchanging US dollars to convertible pesos. The colour and images on convertible peso banknotes are distinct from those on regular pesos and the notes clearly feature the words "pesos convertibles." The banknote denominations are 100, 50, 25, 10, 5 and 1, while there are 50c, 25c, 10c and 5c coins. At the time of writing 1 convertible peso ($1CUC) is worth 24 national pesos ($24CUP) and worth £0.58GBP or €0.73EUR or $1.08USD.
Official tourist-oriented facilities, including all state-run hotels, most state-run restaurants and virtually all shop products, are charged in convertible pesos, though in six of the major resorts, namely Varadero, Cayo Largo, Jardínes del Rey, Santa Lucía, Playa Covarrubias and Holguín, you can use euros to pay for official goods and services. You'll be expected to pay for a room in a casa particular, paladares meals and most private taxis in convertible pesos, though there is some flexibility. Entrance to most cinemas and sports arenas, rides on local buses, snacks bought on the street and food from agromercados are all paid for with national pesos. There are also goods and services, such as stamps, and, most notably, long-distance transport, that can be paid for with either currency. Sometimes this means the peso charge applies only to Cubans, while non-Cubans pay the equivalent in convertible pesos, as is the case with tollgates on roads and museum entrance fees. However, in some instances tourists are merely advised rather than obliged to pay in convertible pesos, and by doing so occasionally enjoy some kind of benefit, such as being able to bypass a waiting list for a bus or getting a guaranteed seat. It should be noted, however, that it is perfectly legal for a non-Cuban to pay for meals and private taxis with national pesos, despite the funny looks or contrary advice you might well receive.
The general rule for the visitor is to assume that everything will be paid for with convertible pesos, but should you ever pay for anything with national pesos – which will usually be in situations where you are the only non-Cuban – expect it to only cost you the equivalent of a few cents or less.
It's best to carry convertible pesos in low denominations, as many shops and restaurants simply won't have enough change. Be particularly wary of this at bus and train stations or you may find yourself unable to buy a ticket. If you do end up having to use a $50CUC or $100CUC note, you will usually be asked to show your passport for security.