How Much Is a Dollar in Cuba? Official and Unofficial Rates

Navigating the Cuban monetary system can present complexities for visitors. This guide clarifies the nuances of exchange rates and payment methods, providing practical insights into managing finances in Cuba.

Understanding Cuban Currency

Cuba’s primary legal tender is the Cuban Peso (CUP). It serves as the sole official currency and is used for most everyday transactions, including local goods and services. The CUP holds no value outside of Cuba and cannot be acquired or exchanged internationally.

Alongside the Cuban Peso, Moneda Libremente Convertible (MLC) plays a significant role. MLC is a digital currency equivalent to one U.S. dollar. It is primarily used for purchases in specialized government-run stores that stock imported items like electronics, toiletries, and certain foods. Accessing MLC involves a prepaid debit card, which can be acquired at official exchange houses and certain hotels.

Official and Unofficial Exchange Rates

Visitors to Cuba will encounter two distinct exchange rates: the official rate and the unofficial, or “black market,” rate. The official exchange rate, set by the Cuban government, is 120 CUP for 1 USD. When exchanging U.S. dollars through official channels like banks or CADECA exchange houses, an 8% conversion fee applies, resulting in an effective rate of 110 CUP to 1 USD. Other foreign currencies, like the Euro, incur a lower 2% conversion fee at these official points.

The unofficial exchange rate offers a significantly higher value for foreign currency due to economic conditions and supply and demand. The informal rate for the U.S. dollar is around 395 CUP, while the Euro can fetch 445 CUP. This informal market operates outside government control, reflecting the actual demand for hard currency within the country. While widely practiced, exchanging money on the unofficial market is not legally sanctioned. Engaging with this market can yield substantially more local currency, potentially stretching your budget further in Cuba.

Exchanging Your Money

Exchanging foreign currency into Cuban Pesos can be done through official and unofficial channels. Official exchange points include CADECA houses and banks. These establishments offer the government-set exchange rate and require a passport or photocopy for transactions. Airports have 24-hour CADECA services, making them a convenient first stop upon arrival.

Many visitors opt for unofficial exchange methods to benefit from more favorable rates. This involves exchanging cash with trusted individuals, such as private accommodation hosts. While common, this practice is not legal. Regardless of the method, bring foreign banknotes that are clean and undamaged, as marked or torn bills may be refused. Carrying a mix of denominations, including smaller bills for convenience and larger ones for better exchange value, is a practical approach.

Using Money in Cuba

Cash remains the most universally accepted form of payment for everyday expenses in Cuba. You will use CUP for transactions at local markets, small private businesses, and for services like local transportation. Carry smaller denominations of CUP for daily purchases and tipping.

For certain goods and services, particularly imported items or those offered in state-run establishments, payment is required in MLC. This means using a prepaid MLC debit card, which can be loaded with foreign currency. While MLC is dollar-equivalent, direct purchase of MLC cards with U.S. dollars may be restricted; other currencies like Euros are preferred for this purpose. Foreign credit and debit cards, especially those issued by U.S. banks, do not work in Cuba due to ongoing U.S. sanctions. Non-U.S. issued Visa and Mastercard may be accepted in larger hotels or government-affiliated businesses, but cash is preferred and recommended for most transactions.