Cuban convertible peso

Cuban convertible peso
peso cubano convertible  (Spanish)
ISO 4217 code	CUC
Central bank	Central Bank of Cuba
Website	www.bc.gob.cu
User(s)	Cuba
Inflation	5%
Source	The World Factbook, 2006 est.
Pegged with	convertible peso = 1.00 U.S. dollars
Subunit
1/100	centavo convertible
Symbol	$, CUC or CUC$
centavo convertible	¢ or c
Nickname	cuc or chavito
Coins
Freq. used	5¢, 10¢, 25¢, 50¢, $1
Rarely used	$5
Banknotes	$1, $3, $5, $10, $20, $50, $100

The convertible peso (sometimes given as CUC$) (informally called a cuc or chavito), is one of two official currencies in Cuba, the other being the peso. It has been in limited use since 1994, when it was treated as equivalent to the U.S. dollar: its value was officially US$1.00. On 8 November 2004, the U.S. dollar ceased to be accepted in Cuban retail outlets leaving the convertible peso as the only currency in circulation in many Cuban businesses. Officially exchangeable only within the country, its value was increased to US$1.08 on 5 April 2008, and reverted to US$1.00 on 15 March 2011. The convertible peso is, by the pegged rate, the twelfth-highest-valued currency unit in the world and the highest valued "peso" unit.

On 22 October 2013 it was announced that the currency is to be scrapped by gradually unifying it with the lower-value Cuban peso.

History

From 1993 until 2004, the Cuban currency was split between the Cuban peso (the currency Cuban citizens are paid in and used for staples and non-luxury items) and the U.S. dollar in combination with the convertible peso, which was a foreign exchange certificate (in use since at least 1985) used for tourism and for luxury items. The Cuban peso (CUP) can be exchanged to the convertible peso (CUC) at the exchange offices (CADECA), at a fixed rate of 24 CUP to 1 CUC (sell) and 25 CUP to 1 CUC (buy); however, for state household book-keeping purposes, both pesos are valued at a 1:1 rate.

On 8 November 2004 the Cuban government withdrew the U.S. dollar from circulation, citing the need to retaliate against further U.S. sanctions. After a grace period ending on November 14, 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 aforementioned grace period (it has been claimed this was because the amounts of US dollars being exchanged were more than anticipated). This measure helped the Cuban government collect hard currency.

Coins

In 1994 coins were introduced in denominations of 5, 10, 25 and 50 centavos, and 1 peso. 5 pesos (rarely seen) was introduced in 1999, followed by 1 centavo coins in 2000.

Banknotes

In 1994 the Banco Central de Cuba introduced notes in denominations of 1, 3, 5, 10, 20, 50 and 100 pesos. On 18 December 2006 the Banco Central de Cuba introduced a new series of notes themed to "Socialist History and Achievements". The front of the notes are similar to its previous series except that on the back of the notes, instead of depicting the Cuban coat of arms on all denominations, each of the notes now has an individualized design.

2006 Series "Socialist History and Achievements"

Image	Value	Dimensions	Main Color	Description		Date of issue	Date of first issue	Watermark
				Obverse	Reverse
	$1	150 x 70 mm	Dark green, tan, and yellow	Monument to José Martí in Havana	Death of José Martí in combat atop a horse at the Battle of Dos Rios	2006	December 18, 2006	José Martí and electrotype 1
	$3	150 x 70 mm	Red, pink, and light green	Monument to Ernesto 'Che' Guevara in Santa Clara	Battle of Santa Clara: tank, derailed train, and soldiers with grenade, machine gun, and rifle	2006	December 18, 2006	José Martí and electrotype 3
	$5	150 x 70 mm	Green, orange and yellow	Monument to Antonio Maceo in Havana	Protesta de Baraguá: Cuban general Antonio Maceo Grajales and Spanish captain general Arsenio Martínez de Campos y Antón in hammocks	2006	December 18, 2006	José Martí and electrotype 5
	$10	150 x 70 mm	Brown, blue and green	Monument to Máximo Gómez in Havana	Revolución Energetica (Energy Revolution): electric power plant, pick-up truck, and linesman	2006	December 18, 2006	José Martí and electrotype 10
	$20	150 x 70 mm	Dark blue, light blue, and yellow/green	Monument to Camilo Cienfuegos	Operacion Milagro (Operation Miracle): eye doctors performing surgery and passengers deplaning a jet	2006	December 18, 2006	José Martí and electrotype 20
	$50	150 x 70 mm	Purple, orange, and yellow	Monument to Calixto García e Iñiguez in Havana	Marchers carrying flags and banners that read “Trincheras de Ideas Valen Mas Que Trinchera De Piedra” and “La Batalla de Ideas”	2006	December 18, 2006	José Martí and electrotype 50
	$100	150 x 70 mm	Red, orange, and bright yellow	Monument to Carlos Manuel de Céspedes	Bolivarian Alternative for the Americas (ALBA): satellite dish, map, woman and man reading, oil refinery	2006	December 18, 2006	José Martí and electrotype 100

The CUC and the U.S. dollar

Between April 2005 and March 2011, the convertible peso was worth 1.08 USD. The CUC is currently pegged to the U.S. dollar at 1:1, as it was between 1994 and 2005.

When exchanging U.S. dollar banknotes a 10% tax is applied plus an exchange commission. The 10% tax is not applied to other currencies,

See also

• Dual Currency in Cuba https://cubaholidays.co.uk/travel-guide/money-exchange
• Cuban peso
• Central banks and currencies of the Caribbean
• Economy of Cuba

References

[1]