Cuban peso
From Wikipedia, the free encyclopedia
| Cuban peso peso cubano (Spanish) |
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| ISO 4217 Code | CUP | ||
|---|---|---|---|
| User(s) | Cuba | ||
| Inflation | 5% | ||
| Source | The World Factbook, 2006 est. | ||
| Subunit | |||
| 1/100 | centavo | ||
| Symbol | $ or $MN[citation needed] | ||
| centavo | ¢ or c | ||
| Coins | |||
| Freq. used | 5¢, 20¢, $1, $3 | ||
| Rarely used | 1¢, 2¢, 40¢[citation needed] | ||
| Banknotes | |||
| Freq. used | $1, $3, $5, $10, $20 & $50 | ||
| Rarely used | $100 | ||
| Central bank | Central Bank of Cuba | ||
| Website | www.bc.gov.cu | ||
The peso (ISO 4217 code: CUP, sometimes called "national peso") is one of two official currencies in use in Cuba, the other being the convertible peso (CUC). Cuban currency has no official value outside the country. The peso (CUP) is used by tourists only for staple and non-luxury products. However, local citizens are paid most of their wages in pesos and have to pay everyday expenses in CUP.
For some accounting purposes the exchange rate is set at 1 CUP = 1 CUC. However, for practical purposes, the exchange rate is that applied by the Cuban banks and Cadecas (exchange bureaux). From 18 March 2005, that rate has been set at 24:1 when exchanging CUC for CUP and 25:1 when going from CUP to CUC.
The convertible peso is currently pegged at $1.08 USD and is used for luxury products and services. All other exchanges rates are set in relation to the CUC.
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[edit] History
The first issue of the Cuban peso was a series of banknotes in 1857. The currency continued to be issued only in paper form until 1915, when the first coins were issued. In 1959, when Fidel Castro took power, one peso equaled one USD. It lost value due to the U.S. blockade and the suspension of the sugar quota. This suspension was the principal economical force driving Cuba to seek out a new economic partner, the Soviet Union. When the Soviet Union dissolved in 1991, the peso lost much of its value and the exchange rate fell to 125 pesos to the USD. Recently, it has become more valuable, fluctuating between 23 and 25 pesos to the dollar.
[edit] Circulating Currency
Coins in circulation are 1, 2, 5, 20 and 40 centavos and 1 and 3 pesos. Banknotes in circulation are 1, 3, 5, 10, 20, 50 and 100 pesos.
Note: 40 centavo coins were withdrawn from circulation around July 2004 and are no longer accepted as payment.
[edit] Two parallel currencies
In 1993, during the period of economic austerity known as the Special Period, the US dollar was made legal tender to encourage hard currency to enter the economy. The dollar became the currency used to purchase some non-essential goods and services, such as cosmetics, and even non-staple kinds of food and drink. In 1994, the convertible peso was introduced at a par with the dollar.
Cuban state workers receive a portion of their wages in convertible pesos, the rest in the normal pesos. Shops selling basics, like fruit and vegetables, generally only accept the normal peso, while "dollar shops" sell the rest. Confusingly, dollars are sometimes referred to colloquially as "pesos", with which currency is meant being understood from the context.
On November 8, 2004, the Cuban government withdrew the U.S. dollar from circulation, citing the need to retaliate against further U.S. sanctions.
[edit] See also
[edit] External links
- Cuba Currency Guide - One country, two currencies.
- Cuban Bank Notes
| Currencies named peso or similar | |
|---|---|
| Current | Argentine peso · Chilean peso · Colombian peso · Cuban peso · Cuban convertible peso · Dominican peso · Mexican peso · Philippine piso · Uruguayan peso |
| Defunct | Argentine peso moneda nacional · Argentine peso ley · Argentine peso argentino · Bolivian peso · Costa Rican peso · Ecuadorian peso · El Salvadoran peso · Guatemalan peso · Guinea Bissau peso · Honduran peso · Nicaraguan peso · Paraguayan peso · Puerto Rican peso · Spanish peso · Venezuelan peso |
