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Currencies and payment methods in Cuba

If there is something that really worries us when planning a trip, it is knowing how much money we need, what currency (or currencies) we should bring, what payment methods we should use and how difficult it may be to obtain it. If the trip you’ve been thinking about – and don’t want to put off any longer – is to Cuba, then you’ve come to the right place.

The official currency of Cuba

The official currency of Cuba is the Cuban Peso, also known by its acronym CUP. One Cuban Peso is equivalent to 100 cents. There are bills of 1, 3, 5, 10, 10, 20, 20, 50, 100, 200, 500 and 1000 pesos, as well as fractional coins of 1, 3 and 5 pesos and 5 and 20 cents. Most goods and services in the country are paid for with this currency, although it is not the only one you will need during your stay on the island. You will see that in some establishments and for certain procedures (such as consular procedures), it is compulsory to pay in freely convertible currency (say euro, pounds sterling, etc., for the USD restrictions or taxes apply ). We will give you more details on this subject later on.

Important! You may read or hear about the CUC (Cuban Convertible Peso). Although this currency circulated in the country until the end of 2020 together with the Cuban Peso (CUP), some outdated pages continue to make reference to it, thus confusing visitors. Do not worry, because absolutely NO payments or service contracts are made in this currency.

History:

The circulation of Cuban pesos has a long history dating back to the country’s colonial period , although the creation of a national currency only took place in the last century under the presidency of General Mario García Menocal (1913-1921).

In the years preceding the triumph of the Revolution (1959), the value of one Cuban peso was equivalent to that of the dollar. After the triumph of the Revolution, the dollar went out of circulation and even the possession of the dollar was penalized.

But the arrival of the so-called Special Period (1991-2000 approximately), marked a before and after in relation to the currency and the exchange market in Cuba. In this context, in order to attract tourism, attract foreign currency and promote the inflow of remittances to the island, the Cuban Convertible Peso (CUC) was created, which could be exchanged with the dollar in exchange houses at a value of 1×1.

The CUC officially ceased to circulate on January 1, 2021, thus returning the Cuban Peso ( CUP) to position itself as the only official currency in the country, without implying that there are no other authorized currencies for the payment of certain goods and services.

Other currencies

Although currently in Cuba only the Cuban Peso ( CUP) is recognized as the official currency, the use of other currencies (foreign currencies ) is authorized for the purchase of certain goods and services. It is important to clarify that the few payments authorized in foreign currency should almost always be made with debit cards, as long as they have not been issued by U.S. banks or their subsidiaries. As an exception to this we know, for example, that payments of consular fees required by some consulates, such as the one in Spain, can only be made using Euros in cash.

Among the payments you can make in other currencies are those made in commercial units known as “MLC stores“. This type of establishment is used to buy mainly by residents of the Island, since they are used to acquire basic necessities. But if, for any particular situation, you have to buy something in them, remember that you can only do it using a credit card, never cash (no commissions apply for this type of payment).

It is also possible that some individuals (cab drivers, pensioners, etc.) may prefer that you pay them for their services in euro or another currency. You could do this by making an agreement with them beforehand and at the exchange rate of the informal currency market operating in the country.

Methods of payment

There are two methods of payment authorized in Cuba: cash and through debit or credit cards (Visa/MasterCard type not issued by American banks) or prepaid cards issued by the Cuban bank for travelers and tourists in Cuba.

Cash

In Cuba most transactions are carried out using cash. Whether you are interested in eating in a restaurant, in a cafeteria or ‘paladar’, you need to take a cab, buy handicrafts or you need to pay the entrance fee to many tourist attractions, you will need to carry cash in hand.

That is why once you arrive in national territory the first step will be to change or withdraw money so that you always carry cash with you. We give you more details about this below.

Important! Cash payments (unless it is not a private individual and it has been agreed) are not made in foreign currency (Euro, USD, Pound Sterling, etc.) Although private individuals often accept foreign currency (especially Euro) in case of doubt, it is highly recommended that you always carry CUP with you and that you also keep yourself updated on the exchange rate in the informal market.

Cards

Some payments can be made with debit or credit cards issued by foreign banks. It is important that you verify, before leaving on vacation, if your bank admits making payments in Cuban territory, since some of them are not authorized for political reasons. Cards issued by U.S. banks or their subsidiaries do not operate on the island, so you will not be able to make payments or withdrawals in Cuba with them. Those that usually work in the country are: Visa, MasterCard, Access, Eurocard, Banamex and American International Service (AIS).

As a novelty with the new monetary policy from 2021 Cuba designed a prepaid card for the exclusive use of tourists and visitors, issued in the country and that you can purchase at airports, exchange houses(CADECA) or branches of the Banco de Crédito y Comercio (BANDEC). We will see the details for its acquisition below. It is also convenient for you to know, however, that there are very few payments that can be made with a card. Not all tourist places, shopping malls, restaurants, cabs, etc., have dataphones to charge cards; in fact, there are really few places that have this method of payment and generally where there are dataphones are only state places (some stores, hotels, tourist bureaus, car rental companies). Therefore, it is highly probable that it is not something you will resort to frequently on your trip. In some hotels or if you are renting a car (either to pay the security deposit or expenses associated with the rental) it is likely that you will use the card payment. In our article Cards

As a novelty with the new monetary policy from 2021 Cuba designed a prepaid card for the exclusive use of tourists and visitors, issued in the country and that you can purchase at airports, exchange houses(CADECA) or branches of the Banco de Crédito y Comercio (BANDEC). We will see the details for its acquisition below. It is also convenient for you to know, however, that there are very few payments that can be made with a card. Not all tourist places, shopping malls, restaurants, cabs, etc., have dataphones to charge cards; in fact, there are really few places that have this method of payment and generally where there are dataphones are only state places (some stores, hotels, tourist bureaus, car rental companies). Therefore, it is highly probable that it is not something you will resort to frequently on your trip. In some hotels or if you are going to rent a car (either to pay the security deposit or expenses associated with the rental) it is likely that you will use card payment. In our article 7 useful tips if you want to rent a car in Cuba we refer to this.

How to obtain a prepaid card?

The MLC (Moneda Libremente Convertible) prepaid card is a rechargeable card with foreign money to be used solely and exclusively in Cuban territory for the payment of some goods and services sold in MLC.

As a visitor you can request one of these cards, presenting your passport and completing the corresponding procedure, both in any branch of the Banco de Crédito y Comercio (BANDEC) distributed throughout the country, and in the Casas de cambio S.A. ( CADECA). This procedure has a cost or commission of around 5 euros. It is not allowed to recharge them from abroad, nor from a bank account or transfer from another similar card, etc., you can only load it with cash amounts of 200, 500 or 1000 euros (or any other foreign currency accepted in Cuba, except USD) and the amount to be reflected on the card will be the equivalent in USD according to the official exchange rate at that time. Most of the bank offices are open from 9:00 am to 3:00 pm, the CADECAs distributed in the cities from 9:00 am to 5:00 pm and some CADECAs located in airports and tourist centers are open 24 hours a day and the card acquisition process is immediate. The card will be valid until it expires (2 years) and obviously if the balance runs out you will not be able to make payments until it is recharged again. It is not associated or linked to any bank account and are anonymous, so in case of loss the visitor will lose the amount you have, you can not claim to the bank or the entity that made it. It is possible to consult the balance, the last operations carried out, change your PIN and withdraw cash in Cuban pesos (CUP) at the current exchange rate in automatic teller machines (ATM).

It is important to take into account that if you decide to acquire a prepaid card, to which you can deposit euros or other currencies accepted in Cuban territory (Canadian Dollar, Swiss Franc, British Pound, Japanese Yen and Mexican Peso), this is only useful to pay in establishments or withdraw money in Cuban pesos in the ATM network of the country, and that once your trip is over, if you want to withdraw the money you have left (only in ATMs) in that card, you will get it in Cuban pesos.

It is valid to clarify that these cards are different from the commonly called “MLC cards” that Cuban residents have. As previously mentioned, the “Prepaid Cards” for visitors are not associated or linked to any bank account and are only for tourists, so foreign identification is mandatory for their confection.

How to exchange money at destination

Both the rates and the forms of exchange in Cuba are quite varied and peculiar.

The official state entities to change your money in Cuba are the ATMs in banks and exchange houses (CADECA).

You will find CADECA offices at the airport, in hotels and in port areas. In these offices there is always a staff (uniformed and with identification) that will assist you, either for the exchange of foreign currencies to Cuban pesos or to clarify any doubts. It is advisable to ask all the doubts you may have regarding the transaction before carrying it out. Also at the time of the transaction you will be asked for your identification documents (passport). There are other CADECA points distributed throughout the different cities of the country; through the maps.me location application it will be easy to find the closest one to your location (remember that in Cuba the internet and other geolocation applications have their limitations, you can find out more about them in these sections: Internet and Orientarte en Cuba ). You will always find a table of easy visibility of the exchange and exchange values at the time of the transaction of the different currencies with respect to the Cuban peso.

There are different types of banks on the island, but only Banco Metropolitano is of interest to us for currency exchange.

“We have more than 500 automatic teller machines (ATMs), of which eight are recycling ATMs that allow cash deposits and withdrawals and six multifunction ATMs that allow foreign currency exchange operations, located at the José Martí International Airport. Of the 520 ATMs in the capital, more than 250 are located in branches and more than 240 are displaced, i.e., they are not located in the bank offices themselves. The latter are operated under contract with SEPSA”. They inform from their official page.

ATMs only dispense local currency, regardless of whether the cards you deposit have funds in foreign currency. For this type of operation there are usually commissions for obtaining cash (we suggest you ask your bank about this).

Informal foreign exchange market

Due to the fact that many Cubans on the island prefer to obtain foreign currency, the informal foreign exchange market has increased in recent times. The exchange rate in this market varies according to supply and demand, but it is usually better than the formally established one. It is possible that it is not easy or suggestive to use this alternative if you do not have any acquaintances or friends in the country, although in some particular places, they may accept your currency and give you back Cuban pesos, at the corresponding exchange rate in the informal market. As always, we suggest asking and informing yourself before making any transaction.

Exchange rates

Pay attention to our recommendations that will surely be very convenient to avoid wasting your money during your trip.

CADECA, banks and ATMs

In Cuba different exchange rates apply for CADECA, banks and ATMs. Those applied in CADECA (exchange house) are slightly better than those used in bank branches and ATMs, so if you bring a lot of money with you we recommend you to do it in the first one.

To know the reference values applied in CADECA you can access the following link(CADECA’s official Facebook page).

Important! CADECAs located at airports, hotels and maritime points do not apply fees for the sale of foreign currency (only the purchase is authorized). The same applies to some CADECAs that are not authorized to carry out the sale operation (more details in the section “Where to change”).

However, to know the rates that apply in banks and ATMs, you should go to the bank branches, because unlike what happens in CADECA, here they are updated almost daily. However, we can tell you that one euro, for example as of October 2022, is usually exchanged at around 121 pesos. This would be the approximate amount you would also get if you decide to withdraw money from your debit card (Visa or MasterCard) at an ATM.

Informal’ foreign exchange market.

These rates can be somewhat unstable as they are set according to fluctuations in supply and demand, although they generally do not fall below the reference values of banks, ATMs and CADECA.

How much money to carry

This is a complex question, as the answer depends a lot on what your travel objectives are, how long your stay will last, the services you will require, and, of course, how much your spending limit is.

You could make an estimate taking into account some elements such as:

Transfers (if you will go in cabs, tourist buses, etc.)
Places of interest (entrance fees, possible services to hire on site, etc.)
Meals (if where you are staying includes breakfast, lunch and/or dinner, the expense would not be so significant. Even in such cases, it is important to consider this because there is always the possibility that you will have to eat out).

Cuba is not an extremely cheap country by any means, although obviously everything depends on how you plan your trip; therefore, the important thing is that you go prepared to assume a little over the planned activities and so you do not get scares to your pocket. In our “Budget” section we talk more about it.

Where to change

As we explained in previous sections, there are no location restrictions for the sale, so it will be relatively easy for you to change your money upon arrival, even if you decide to do it through a friend or acquaintance.

However, if you are already leaving Cuba and you have some money left over in local currency, you will not be able to carry out the operation in reverse in such an easy way. It is important for you to know that CADECAs are the only offices officially authorized at present to sell foreign currency to those who need it (the person giving Cuban pesos and obtaining foreign currency in exchange), with some exceptions: CADECAs located, for example, in airports, hotels or seaports do not allow this type of operation.

In the whole country only 37 CADECA will sell you foreign currency in case you need it. Since there are few offices, and there is also a high demand in relation to the sale, it is very common to find long lines in these places, so we do not suggest it as an option to really take into account.

However, in case you are interested, here is a list of the exchange houses (CADECA) authorized to sell foreign currency in Havana, the capital of the country:

Havana Center. Belascoaín Street no. 462 e/ Zanja y Salud.
Plaza (Vedado). 23rd Street, corner J.
Diez de Octubre. Amado Street between Mayía Rodríguez and Goss, Reparto Víbora.
East Havana. Building A (Twelve Floors), Zone 1, Reparto Alamar.
Arroyo Naranjo. Calle 249 no. 22904, e/204 y 229.
Beach. 42nd Street, corner 21.

If you have a lot of money left over in local currency from your trip to Cuba, remember that you can always turn to a friend or acquaintance to help you with the exchange. However, the truth is that most Cubans are more interested in acquiring foreign currency, not selling it.

Tips to optimize and take care of your money

Avoid carrying USD as cash at all costs. It is easier and more profitable to exchange Euros than dollars.
Avoid changing too much money into Cuban pesos, because if you don’t use it all, it may become difficult to change it back into euros or other currencies.
When you walk around, try to carry the day’s cash and leave the rest in a safe place.
If you have VISA or MasterCard debit cards, travel with them: they could be useful in case you run out of cash or need to buy something in ‘MLC stores’.
If your cards are from American banks or their subsidiaries, the prepaid card is a good alternative as well as if you do not want to carry your bank cards and leave them in a safe place. In case of loss you will only lose the amount you have in balance at that moment.