Cuban peso

Cuban peso
source
Currency name	Cuban peso
Iso code	CUP
Using countries	Cuba
Subunit ratio 1	1/100
Subunit name 1	centavo
Symbol subunit 1	¢ or c
Frequently used banknotes	$1, $3, $5, $10, $20, $50, $100, $200, $500, $1000
Frequently used coins	1¢, 2¢, 5¢, 20¢, $1, $3, $5
Issuing authority	Central Bank of Cuba
Issuing authority website	www.bc.gob.cu

Cuban peso. The Cuban peso is the official national currency of the Republic of Cuba, issued and regulated by the Central Bank of Cuba. It is subdivided into 100 centavos and serves as the primary medium of exchange for the majority of domestic economic activities. The currency's symbol is $ or $MN, distinguishing it from other dollar-denominated currencies.

History

The peso was first introduced in 1857, replacing the Spanish real at a rate of eight reales to one peso, during the era of Spanish colonial rule. Following the Spanish–American War and the subsequent American occupation, the peso was pegged at par to the United States dollar, a linkage that persisted for decades. After the Cuban Revolution and the rise of Fidel Castro, the Government of Cuba nationalized the banking system and established the Central Bank of Cuba in 1997 to assume full monetary authority. Throughout the latter half of the 20th century, the currency experienced significant fluctuations due to the U.S. embargo, the collapse of the Soviet Union, and various domestic economic policies.

Coins

Coinage has been produced in various series, with early issues under the Republic featuring national symbols like the Coat of arms of Cuba. Following the revolution, new coinage was introduced, often bearing images of Che Guevara or stars representing the 26th of July Movement. Contemporary circulating coins, minted from materials like aluminum and cupronickel, include denominations of 1, 2, 5, and 20 centavos, as well as 1, 3, and 5 peso coins. Commemorative coins are occasionally issued by the Central Bank to mark events such as anniversaries of the Moncada Barracks attack or the Bay of Pigs Invasion.

Banknotes

Banknotes are printed under the authority of the Central Bank and feature prominent Cuban historical figures and landmarks. Current series notes depict individuals such as independence hero José Martí on the 1-peso note, revolutionary Camilo Cienfuegos on the 20-peso note, and scientist Carlos J. Finlay on the 100-peso note. Security features include watermarks, security threads, and holograms to prevent counterfeiting. Earlier note issues from the 20th century often featured buildings like the National Capitol or scenes from the Ten Years' War.

Exchange rates and monetary policy

The official exchange rate is set by the Central Bank of Cuba, though multiple rates have historically existed for different sectors. Policy is heavily influenced by the Council of Ministers of Cuba and the Ministry of Economy and Planning, often aiming to control inflation and manage foreign exchange reserves. The peso's value has been affected by macroeconomic factors including sugar export revenues, tourism income, and remittances from the Cuban diaspora in places like Miami. Exchange operations are primarily conducted through state institutions like Banco Metropolitano or official CADECA exchange houses.

Dual currency system and reforms

For nearly three decades, Cuba operated a complex dual currency system involving the Cuban peso and the Cuban convertible peso (CUC), which was pegged to the United States dollar. This system created economic distortions, segregating access to goods between sectors like tourism and the domestic market. In 2021, the Government of Cuba enacted the Tarea Ordenamiento (Ordering Task) monetary reform, which eliminated the CUC and established a single currency system based on the Cuban peso. The reform involved a significant devaluation, introduced new exchange rates for state enterprises, and was accompanied by broad price adjustments for salaries and goods, impacting the entire Economy of Cuba.