Cuba Pesos
Cuba uses the Cuban peso as is standard currency, but it also has the 'convertible peso' in use. The Cuban peso is often referred to as the 'national' peso. Each peso, whether the convertible or national is divided into 100 cents, or centavos as they are called in Cuba. Each peso is issued in the form of coins and notes. Coins are 5¢, 20¢, $1, $3, with notes issued in the form of $1, $3, $5, $10, $20 and $50. There is also a $100 note but in reality this is rarely used.
Both currencies are issued by the Central Bank of Cuba. The national peso is identified by the letters CUP, the convertible peso is identified by the letters CUC.
The convertible peso is not so widely used in Cuba, but it can still be found in many of the tourist areas.
History of the Cuban Pesos
The peso has been the official currency of use since 1857, when for the first time, money was printed specifically for use in Cuba and it was called the peso. Previous to this the Spanish reales or Spanish colonial reales had been in circulation.
However although the currency has been in use since then, it was not without its problems. First of all (from 1881) it was pegged to the dollar. But as the relationship between Cuba and the US deteriorated, the decision was taken to peg it to the Soviet ruble in 1960. This was due to the fact that the US had initiated an embargo specifically against Cuba and so Cuba decided to adopt the ruble (plus by this stage, much of the value of the peso had been lost, it was effectively devalued by US actions).
Whilst this relationship was predominantly secure when the Soviet Union was in a secure state, when the Soviet Union collapsed in 1991, the peso again lost much of its value and was reduced to adopting the US dollar as an official currency, in 1993. The convertible peso, so called because it was effectively convertible or exchangeable with the US dollar was introduced in 1994. Then in 2004 the government made the use of dollars against the law and thus ensuring that only the tow types of pesos could be used.
In short therefore, where US dollars would once have been used, now there was just the convertible peso, which meant that the US dollar would effectively be relegated to a position of no longer being an acceptable currency.
So this is why there are two currencies in Cuba and why sometimes you may find a difference in the prices charged, since each has a different exchange rate!
Getting Hold of Costa Rican Pesos
There is one major issue that you need to consider when you think about how you will access money when in Cuba and that is whether your bank or credit card provider is from an American bank. If it is then you will not be able to use your credit card in an ATM. If it is a non-American bank, then you will be able to use it. It is confusing, but such is life in Cuba when it comes to money!
When or if you are able to use your card, you will be able to withdraw pesos convertible, which will only be exchangeable in Cuba.
Now, as if that wasn't confusing enough: it gets worse. When you go to an ATM, it will allow you to take out up to 40 notes. Now bear in mind that most ATMs are stocked with $3,5 or $10 notes and you can do the maths: you can't take out much money in one transaction.
So you are better to take traveller's cheques and then cash these in at the bank. Note, however, that you shouldn't take US dollars: technically they will not be accepted, but in reality you may find that you can use them. However, they really aren't worth the hassle, so take either euro, Sterling or Canadian $ as traveller's cheques.
Some people advise that whilst traveller's cheques may be more secure, cash is much more easy to cash. This is true, but it is a pain having to carry cash, so you are better off and far more secure with a combination of cash (for emergency use), traveller's cheques and then a debit or credit card (not issued by a US bank). This combination will see you through and ensure that you can always lay your hands on some cash.
Safety Issues
As a general rule, Cuba is a pretty safe country to visit. Violent crime is really quite low and there isn't a lot to be worried about. The police tend to be quite strict, which means that it is fairly safe to walk around all of Havana and indeed most of the major towns and cities. Yet it pays not to become complacent and you should be mindful of not becoming too trusting.
The main problems that you may encounter are 'scams' which are the kind of low impact crimes, that are more to do with cheating unsuspecting tourists out of some money. Remember that Cuba is basically a 3rd World country and they view all tourists as quite wealthy, by their standards, so they can take advantage of tourists who are unaware of some of the tricks that can be pulled, but if you know of them beforehand, then it is much easier to avoid being caught out.
One of the favourite tricks concerns the different currencies in use. The national peso and the peso convertible have different exchange rates. However, as a tourist you will 'deal' in pesos convertible. These are of a higher value than the national pesos. So you can hand over your pesos convertible and be given change in national pesos: but in reality you have been short changed, since they are not worth as much. This is really difficult to monitor, because at least initially you aren't familiar enough with the currency to be able to tell the difference. So just keep an eye on the change you are given.
If you are offered very cheap cigars which are 'top quality' on the street, by a street hawker, then simply ignore them. Usually they are fake cigars of poor quality and so you really aren't getting a bargain-you are just being ripped off!
One scam which is not quite so prevalent now as it once was, is that of people 'befriending' tourists and offering to show them real Cuban or Havana life. They will suggest that you go to a bar where you will be charged an exorbitant amount for drinks. This can often leave people feeling quite hurt that they have been taken for a ride on the pretext of being 'friendly' so their wallets and their pride are damaged.
Next, particularly in Havana, be very careful about money. Often people think that they will make a few pesos out of tourists and may not give you change, may short change you or overcharge you, telling you that the prices are in pesos convertible when in fact they are not.
Finally never, never let your credit card out of your sight, since fraud is common and if you do let it be taken away it could be tampered with, or a sum added onto the bill.
But to put things in perspective, these scams are not life threatening and they will not cause you to have sleepless nights (as losing all your cash, credit cards and passport might). So be aware and be vigilant but if someone does rip you off for a few pesos, then treat it as part of Cuban life, not something to brood on, or ruin your holiday.
Spending Cuban Pesos
Cuban pesos can go a long way, if you eat at the street stalls or the small paladares (café type restaurants) but basically the state own all the restaurants and hotels and this makes it much more expensive to eat there, so Cuba is not as cheap as you may imagine. There may even be two sets of menus in places, one for the tourists and one for the local people.
However, tourism is important and helpful to the local economy. Many people in Cuba are really quite poor and so leaving a generous tip can certainly help people to survive, although being over generous can swing the other way and lead people to just become dependent on tourists' generosity, so be sensitive, but not mean with tips.
Cigars are quite a good buy in Cuba, for obvious reasons, but make sure that you buy them from a state owned store and that if you are buying a lot, you have all the documentation that you will need, otherwise, you may run into problems upon your return home.
Overview
Cuba, now that Fidel Castro is no longer at the helm, may change, but it is a very interesting place to visit, with some fantastic nightlife. The money issue is confusing, but in some ways this actually makes Cuba more exciting and more different than many of its closest neighbours.
Tourism is an important part of the local economy and so it is in everyone's interests to ensure that people enjoy their stay in Cuba, tell their family and friends and of course return.
Previously tourists were strictly segregated from locals, but this has now ended and people are able to experience much more of real Cuban life, than they were previously. Cubans are now even allowed to stay at tourist hotels. Before Fidel Castro stood aside, they were not able to do this. Now they can, even though very, very few can actually afford to stay there!
For further information about Cuba and the government there, visit the official website of the Cuban government at www.cubatravel.cu/client/home/index.php. It gives a real insight into this fascinating country and also some information about the 'real' Cuba, although some of the advice is fairly quaint with people advised, from the 'Knowing Culture' section, that if they want to know more about traditions or customs, then they should go to a museum…. Now that is very definitely Cuba!