Cuban convertible peso
Categories: Currencies of the Americas | Economy of Cuba | National currencies
The Cuban convertible peso (ISO 4217 code: CUC, usually given as CUC$) is one of two official currencies in Cuba. Informally known as the chavito, it has been in limited and unofficial use since the early 1990s, and was adopted as an official currency in November 2004. Only exchangeable within the country, its value is nominally pegged to that of the U.S. dollar (USD). Coins in circulation are 1, 5, 10, 25, 50 centavos, and 1 peso (1 centavo was introduced in 2000). Banknotes in circulation are 1, 3, 5, 10, 20, 50, and 100 pesos.
From 1993 until 2004, the Cuban economy was split between the Cuban peso, used mainly by Cuban citizens for basic supplies, and the US dollar in combination with the convertible peso, which was used by tourists and for 'luxury' items. (For more details, see the Cuban peso article).
However, on October 25, 2004, Cuban President Fidel Castro announced that the U.S. dollar would be withdrawn from circulation in Cuba to retaliate against further U.S. sanctions. Cubans had until November 8, 2004 (later extended to November 14, 2004), to convert their dollars free of charge into convertible pesos before new taxes came into effect; after this date, it would remain legal to hold US dollars, but a 10% surcharge would be imposed when converting them into convertible pesos. There is a concern that Cuban expatriates in the US will now find it harder to send money to their relatives who are in Cuba; the government suggests they send remittances in an alternative currency, such as Canadian dollars,
From its introduction until 2005, the convertible peso was pegged to the US dollar at 1:1. On March 24, 2005, the central bank increased the value of the convertible peso by 8%, making one convertible peso worth 1.08 US dollars. However the Cuban convertible peso is still connected with the dollar as this 8% will not change in time, unless the Cuban goverment decide to modify the rate.
The 10% tax is applied in addition to this 8% increase, meaning that to buy 1 Cuban convertible peso you will need almost $1.20US. This tax is not applied to other currencies.
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| Currencies of The Americas | |
|---|---|
| North | Bermuda dollar | Canadian dollar | Danish krone (Greenland) | Euro (Saint-Pierre et Miquelon) | Mexican peso | US dollar |
| Central | Belize dollar | Costa Rican colón | Guatemalan quetzal | Honduran lempira | Nicaraguan córdoba | Panamanian balboa | US dollar (El Salvador) |
| Caribbean | Aruban florin | Bahamian dollar | Barbadian dollar | Cayman dollar | Cuban peso | Cuban convertible peso | Dominican peso | East Caribbean dollar | Euro (Guadeloupe, Martinique) | Haitian gourde | Jamaican dollar | Netherlands Antilles florin | Trinidad and Tobago dollar |
| South | Argentine peso | Bolivian boliviano | Brazilian real | Chilean peso | Colombian peso | Euro (French Guiana) | Falkland pound | Guyanese dollar | Paraguayan guaraní | Peruvian nuevo sol | Suriname dollar | US dollar (Ecuador) | Uruguayan peso | Venezuelan bolívar
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