Understanding the Peso System
Cuba's currency system is the most confusing in the world — and a constant annoyance for tourists and Cubans alike.
The Current Situation (2025/2026)
Since the currency reform in January 2021, there is officially only one currency: the Cuban Peso (CUP). The old convertible Peso (CUC, also called "dollar") has been abolished. The official exchange rate is 1 USD = 120 CUP.
In practice, however, there is an informal exchange rate (mercado informal), which is significantly higher: 1 EUR = 250–350 CUP (as of early 2026, fluctuates greatly). This rate is used by almost all private providers — Casas Particulares, Paladares, taxi drivers. Those who exchange at the official rate (at the bank or the CADECA exchange office) effectively pay twice as much.
MLC (Moneda Libremente Convertible)
In state foreign currency stores (tiendas MLC), transactions are conducted in MLC — a virtual currency on special bank cards that is pegged to the USD. These stores sell imported goods (oil, hygiene products, electronics) that are otherwise unavailable. Tourists can buy MLC cards at CADECA locations.
Practical Tips
- Bring EUR in cash — this is the simplest and cheapest method
- Exchange a portion at the Casa Particular at the informal rate
- Small bills (5, 10, 20 EUR) are more practical than large ones
- For state facilities (hotels, museums, Viazul), payment is often directly in EUR/USD
- You need CUP cash for street stalls, local buses, and small shops
Achtung
The informal money exchange is technically illegal but practiced by everyone — including Casas Particulares and Paladares. Only exchange with trustworthy people (your Casa owner) and never on the street. Always count carefully!
