The convertible peso (sometimes given as CUC$ and informally called a cuc or a chavito) was one of two official currencies in Cuba, the other being the Cuban peso. It had been in limited use since 1994, when its value was pegged 1:1 to the United States dollar.
On 8 November 2004, the U.S. dollar ceased to be accepted in Cuban retail outlets and left the convertible peso as the only currency in circulation in many Cuban businesses. Officially exchangeable only within the country, its value was increased to in April 2005, but reverted to on 15 March 2011. On 10 December 2020, it was announced that monetary unification would take effect from 1 January 2021. From that date, the CUC was no longer accepted in many Cuban businesses; it could be exchanged only in banks or CADECAs (casas de cambios), or used in certain shops, for a six-month period. On 15 June 2021, it was announced that the CUC would remain exchangeable in banks for a further six months but that no shops would accept them from 1 July. The final date for exchanging CUCs was 30 December 2021.
History
thumb|A sign in 2016 informing that prices are in CUC but can be paid in CUP (cash and card admitted). Change was returned in CUC.
In 1981–1989, Cuba used so-called INTUR coins and cheques. Convertible foreign currency was exchanged into these cheques rather than the national currency, which could be used to buy some luxury goods not available for purchase in the national currency.
Also, from 1985, Banco Nacional de Cuba issued foreign exchange certificates of various types.
Because of the economic problems during the Special Period, the Cuban government allowed the possession of U.S. dollars (which had previously been illegal) and began selling goods and services in U.S. dollars, initially for tourism and for luxury items.. In 1994, they began issuing the convertible peso, to circulate together with the U.S. dollar.
This was separate from the Cuban peso (CUP), which was used for staple items. The Cuban peso (CUP) can be exchanged to the convertible peso (CUC) at exchange offices (CADECA) at a fixed rate. Since the early 2000s the rates have been 24 CUP to 1 CUC (sell) and 25 CUP to 1 CUC (buy); After a grace period ending on 14 November 2004, a 10% surcharge began to be imposed when converting U.S. dollars into convertible pesos. The change was announced some weeks beforehand, and was extended by the grace period. It has been claimed that it was because the amounts of U.S. dollars being exchanged were more than anticipated. The measure helped the Cuban government collect hard currency.
thumb|Exchange rates in 2013 at the airport.
thumb|Gasoline pump showing prices in CUC (1.10 CUC/liter) in 2015.
thumb|Shop in 2016 showing prices in CUP and CUC.
From 2014, some state-owned shops began to set the prices in both CUC and CUP, and accept payment in either. The 10% surcharge on converting US dollars was removed in July 2020.
Cuba's economic difficulties since the end of 2019 have resulted in shortages of goods in CUP and CUC stores, the opening of stores priced in US dollars and only accepting payment by cards backed by foreign currencies, the waiving of the 10% penalty for exchanging US dollars, the resumption of US dollars as unofficial medium of exchange, and the plunge in the value of the CUC below US$1 in unofficial street exchanges.
Coins
The first minting of convertible coins took place in 1994 with face values of 5, 10, 25, and 50 convertible cents and 1 convertible peso, with their issuance taking place at the beginning of the following year.
Convertible peso coins that were minted in 1994 outside of the country (Canada) have the characteristic that when a vertical turn is made starting from the obverse of the coin, the coat of arms minted on the reverse appears upside down.
But since 1996, these coins were minted in Cuba, with the characteristic that when a vertical turn is made starting from the obverse, the coat of arms minted on the reverse appears in its normal position.
{|class="wikitable" style="font-size: 90%"
|+ 1994 Serie of Cuban convertible peso coins
|-
!colspan=2| Image !!rowspan=2| Value !!rowspan=2| Dimensions !!rowspan=2| Main Color !!colspan=2| Description !!rowspan=2| Printer !!colspan=2| Date of !!rowspan=2| Watermark
|-
! Obverse !! Reverse !! Obverse !! Reverse !! Issues !! Withdrawal
|-
|thumb|CUC $1 (1994)
|thumb|CUC $1 (1994)
| $1
| 150 x 70 mm
| Dark green, tan, and yellow
| Monument to José Martí, at Revolution Square, Havana City.
| The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|-
|thumb|CUC $3 (1994)
|thumb|CUC $3 (1994)
| $3
| 150 x 70 mm
| Red, pink, and light green
| Monument to Ernesto 'Che' Guevara, at Che Guevara Square in Santa Clara City, in Villa Clara Province.
| The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|-
|thumb|CUC $5 (1994)
|thumb|CUC $5 (1994)
| $5
| 150 x 70 mm
| Green, orange and yellow
| Monument to Antonio Maceo, at Antonio Maceo Park in front of Havana’s Sea Wall, Havana City.
| The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|-
|thumb|CUC $10 (1994)
|thumb|CUC $10 (1994)
| $10
| 150 x 70 mm
| Brown, blue and green
| Monument to Máximo Gómez, in front of the entrance of Havana’s Bay.
| The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|-
|thumb|CUC $20 (1994)
|thumb|CUC $20 (1994)
| $20
| 150 x 70 mm
| Dark blue, light blue, and yellow/green
| Monument to Camilo Cienfuegos
| The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|-
|thumb|CUC $50 (1994)
|thumb|CUC $50 (1994)
| $50
| 150 x 70 mm
| Purple, orange, and yellow
| Monument to Calixto García e Iñiguez, in front of Havana’s Sea Wall.
|The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|-
|thumb|CUC $100 (1994)
|thumb|CUC $100 (1994)
| $100
| 150 x 70 mm
| Red, orange, and bright yellow
| Monument to Carlos Manuel de Céspedes
| The Cuban coat of arms
|
| 1994
| January 1, 2021
| Visible against the light José Martí's effigy
|}
2004 Series
In the year 2004, the Central Bank of Cuba issued its first series of convertible peso bills with face values of 5 and 10 convertible pesos.
The printing is flat, and the front and back design is generally similar to the 1994 series issued by the National Bank of Cuba, showing the legend "Central Bank of Cuba" and its logo.
The security elements present are the localized watermark with the effigy of José Martí and the security thread with the text "PATRIA O MUERTE - VENCEREMOS"
{|class="wikitable" style="font-size: 90%"
|+ 2004 Serie of Cuban convertible peso
A new security feature has been incorporated into all the bills of this new series providing greater security:
- The watermark (image of José Martí on the left) is now personalized with the denomination number of the bill.
On the front of the bills, the monuments to the heroes of our liberation struggles are maintained, along with the main elements that appear in previous issues, displaying great precision and clarity, as well as tactile relief.
Main security features present in this series:
- Watermark with the effigy of José Martí on the left, personalized with the denomination number of the bill.
thumb|Jose Marti watermark
- Security thread with the text "PATRIA O MUERTE – VENCEREMOS" located to the left of the monument.
- Latent image with the initials "BCC" that becomes visible in the lower right corner of the front when the viewing angle is changed.
These new bills entered circulation alongside the previous issues, which retained their legal validity.
{|class="wikitable" style="font-size: 90%"
|+ 2006 Series "Socialist History and Achievements"
|-
!colspan=2| Image !!rowspan=2| Value !!rowspan=2| Dimensions !!rowspan=2| Main Color !!colspan=2| Description !!rowspan=2| Printer !!colspan=2| Date of !!rowspan=2| Watermark
|-
! Obverse !! Reverse !! Obverse !! Reverse !! Issues !! Withdrawal
|-
|thumb|CUC $1 (2006)
|thumb|CUC $1 (2006)
| $1
| 150 x 70 mm
| Dark green, tan, and yellow
| Monument to José Martí, at Revolution Square, Havana City.
| CAIDA EN COMBATE DE JOSE MARTI: Death of José Martí in combat at the Battle of Dos Rios.
|
| 2006, 2007, 2011, 2013, 2016, 2017
| January 1, 2021
| Visible against the light José Martí's effigy and number "1".
|-
|
|thumb|CUC $3 (2006)
| $3
| 150 x 70 mm
| Red, pink, and light green
| Monument to Ernesto 'Che' Guevara, at Che Guevara Square in Santa Clara City, Villa Clara Province.
| LA BATALLA DE SANTA CLARA: Battle of Santa Clara.
|
| 2006, 2007, 2016, 2017
| January 1, 2021
| Visible against the light José Martí's effigy and number "3".
|-
|
|thumb|CUC $5 (2006)
| $5
| 150 x 70 mm
| Green, orange and yellow
| Monument to Antonio Maceo, at Antonio Maceo Park in front of Havana’s Sea Wall, Havana City.
| PROTESTA DE BARAGUA: Cuban general Antonio Maceo Grajales and Spanish Captain General Arsenio Martínez Campos in hammocks.
|
| 2006, 2007, 2008, 2011, 2012, 2013, 2017
| January 1, 2021
| Visible against the light José Martí's effigy and number "5".
|-
|
| thumb|CUC $10 (2006)
| $10
| 150 x 70 mm
| Brown, blue and green
| Monument to Máximo Gómez, in front of the entrance of Havana’s Bay.
| REVOLUCION ENERGETICA: Electric power plant, pick-up truck, and linesman.
|
| 2006, 2007, 2008, 2011, 2012, 2013
| January 1, 2021
| Visible against the light José Martí's effigy and number "10".
|-
|
| thumb|CUC $20 (2006)
| $20
| 150 x 70 mm
| Dark blue, light blue, and yellow/green
| Monument to Camilo Cienfuegos.
| OPERACION MILAGRO: Eye surgeons performing a procedure and passengers deplaning from a jet.
|
| 2006, 2008
| January 1, 2021
| Visible against the light José Martí's effigy and number "20".
|-
|
| thumb|CUC $50 (2006)
| $50
| 150 x 70 mm
| Purple, orange, and yellow
| Monument to Calixto García e Iñiguez, in front of Havana’s Sea Wall.
| LA BATALLA DE IDEAS: Marchers carrying flags and banners that read “TRINCHERAS DE IDEAS VALEN MAS QUE TRINCHERAS DE PIEDRA” and “LA BATALLA DE IDEAS”.
|
| 2006, 2007, 2011
| January 1, 2021
| Visible against the light José Martí's effigy and number "50".
|-
|
| thumb|CUC $100 (2006)
| $100
| 150 x 70 mm
| Red, orange, and bright yellow
| Monument to Carlos Manuel de Céspedes.
| ALTERNATIVA BOLIVARIANA PARA LAS AMERICAS (ALBA): Satellite dish, Latin America map, woman and man reading, oil refinery.
|
| 2006, 2007
| January 1, 2021
| Visible against the light José Martí's effigy and number "100".
|}
CUC and U.S. dollar
The convertible peso was officially pegged at from 1994 to 2005, at US$1.08 from April 2005 to March 2011, and again at since 2011. Since the end of 2019 the CUC traded below in unofficial street exchanges.
From 2005, when U.S. banknotes were exchanged, a 10% tax was applied, plus an exchange commission. From June 2020 this 10% tax on US dollars was eliminated.
See also
- Central banks and currencies of the Caribbean
- Economy of Cuba
References
External links
- A little introduction to Cuba's dual currency system (archived 4 March 2016)
- Cuban convertible peso banknotes