Wanderlust World Wanderlust World For decades, Cuba operated with two official currencies circulating simultaneously: the Cuban Peso (CUP) for domestic use and the Convertible Peso (CUC) for tourism and foreign trade. This dual system created a complex economic landscape that the government has been working to unify.
The CUP is used by Cuban residents for everyday purchases—food, utilities, local transport, and state-subsidized services. It is not freely convertible on international markets.
The CUC was pegged 1:1 to the US dollar (minus a 10% surcharge on USD cash) and used by visitors, foreign businesses, and Cubans for imported goods, hotels, car rentals, and "dollar stores." It circulated alongside the CUP but held far greater purchasing power.
Officially, 1 CUC = 24 CUP (or 25 CUP for selling). However, informal street rates often diverged, sometimes reaching 1 CUC = 30–35 CUP, reflecting the CUP's weaker real value and the scarcity of hard currency.
Starting January 1, 2021, Cuba began a formal process to eliminate the CUC, making the CUP the sole legal tender at a fixed rate of 24 CUP = 1 USD. The transition aims to simplify the economy, reduce distortions, and improve transparency, though it has brought inflationary pressures and adjustment challenges for households and businesses.