MONEY: CUP VS. CUC

Cuba today, fun factoid

Cuba’s dual-currency system started with the fall of the Soviet Union in 1993. Cubans are paid in CUP and the CUC is tied to the US dollar. This extreme economic crisis is known as the Special Period.

Image from Cuba101.com

CUP (coop): Peso Cubano / “moneda nacionale” is mainly used by Cubans and currently 25 CUP equals 1 US dollar.

CUC (kook): Peso Convertible (mainly used by tourists) and is pegged to the US dollar so that 1 CUC equals 1 US dollar.

For tourists, the difference might mean over-paying for a sandwich or realizing that you paid in CUC but got your change in CUP.  More importantly, this limits Cuban’s access to foreign goods, restaurants, and entertainment geared toward tourist dollars.

As a reference point, the average monthly salary in Cuba is 25 CUC and a liter bottle of  olive oil costs 9 CUC. Basically, goods are extremely expensive for Cubans.