In this blog post, we’ll explore the current state of using US dollars in Cuba. Plus, we’ll offer tips on what currency to bring and how to exchange money.
So, if you’re planning a trip to Cuba, read on to find out more!
What’s Cuba’s main currency?
The main currency in Cuba is the Cuban Convertible Peso (CUC), also known as the “chavito.”
In 1994, the currency came on the scene as a replacement for the US dollar, which had been widely used in Cuba until that point.
The CUC is pegged to the US dollar, with an exchange rate of 1 CUC to 1 USD. It’s the currency most commonly used by tourists and is accepted at most hotels, restaurants, and shops.
The Cuban Peso (CUP) is another currency used in Cuba, but locals mainly use it for everyday transactions. Examples include buying groceries or taking public transportation. You’ll likely only need to deal with the CUC as a tourist.
Can I use US dollars in Cuba?
In general, using US dollars in Cuba is not recommended. They’re subject to a 10% exchange fee, meaning you will receive 87 CUC for every 100 USD. This is due to political and economic reasons, as the US government imposes restrictions on financial transactions with Cuba.
As a result, it’s much more advantageous to exchange your US dollars for another foreign currency. Before arriving in Cuba, you can exchange for Euros, Canadian dollars, or British pounds. These currencies don’t incur the 10% exchange fee. Plus, you’ll get a better exchange rate when converting them to CUC in Cuba.
Alternatively, you can bring cash in CUC or use credit cards. But be aware that there’s limited credit card usage in Cuba and fees may apply. It’s always a good idea to have a mix of payment options when traveling to Cuba and to plan for currency exchange.
Do shops and restaurants in Cuba accept US dollars?
While some shops and restaurants in Cuba may accept US dollars, it’s becoming less common. Again, this is due to the 10% exchange fee on US dollars. Cuban Convertible Pesos (CUC) or other foreign currencies are better to avoid the additional cost.
Additionally, some shops and restaurants may only accept cash in CUC and not accept credit cards, so having some cash on hand is essential when traveling in Cuba.
It’s a good idea to exchange your currency at a bank or an official currency exchange office to get the best exchange rate and avoid scams.
Tips on exchanging your US dollars for Cuban Convertible Pesos (CUC)
Here are some suggestions for exchanging your US dollars for Cuban Convertible Pesos (CUC):
Exchange your US dollars for another foreign currency before arriving in Cuba to avoid the 10% exchange fee applied to US dollars.
Use a reputable bank or official currency exchange office to exchange your currency. Avoid exchanging money on the street, as this can be risky and may result in receiving counterfeit money.
Check the exchange rate before exchanging your currency. The exchange rate for CUC can vary between exchange offices, so shopping around for the best rate is a good idea.
Keep your receipts when exchanging money. You may be asked to provide proof of currency exchange when leaving Cuba.
Only exchange the amount of money you need. It’s not recommended to exchange large amounts of money, as exchanging CUC for another currency can be challenging.
Be aware of currency exchange scams. Some exchange offices may offer a favorable exchange rate but will charge a commission fee that is not disclosed upfront. Read the fine print and ask about fees or commissions before exchanging your currency.
By following these tips, you can easily exchange your US dollars for Cuban Convertible Pesos (CUC) and avoid unnecessary fees or scams.
Being financially savvy when traveling to Cuba
All in all, while US dollars may still be accepted in some shops and restaurants in Cuba, it’s not recommended to use them due to the 10% exchange fee that is applied. It’s better to exchange your US dollars for another foreign currency, such as Euros or Canadian dollars, before arriving in Cuba to avoid the additional fee.
When exchanging your currency, use a reputable bank or official currency exchange office, check the exchange rate, and keep your receipts. It’s also a good idea to only exchange the amount of money you need and be aware of currency exchange scams. By following these tips, you can ensure a smooth and hassle-free currency exchange process in Cuba.
