There is a lot of confusion about currency and money in Cuba.
A lot of people think and a lot of websites claim that Tourists have to use CUC (Convertible Currency) and Cubans use MN Moneda Nacional). This is utter nonsense on a lot of levels!
Some misinformation about currency
First of all: You can use MN as a tourist and I recommend you do so, just to show that you understand money! Cubans use CUC all the time. You can exchange your CUC for MN in all Cadecas.
Secondly: The Convertible Currency is only Convertible in Cuba. Take it home and it is worthless… Like Monopoly money is only money within the game. So it is only convertible in name.
Thirdly: People often ask me ‘how to spend their money without supporting the regime. Impossible! When you arrive you exchange your hard currency to Game Money. The hard currency is already in the government bank. You only spend Game Money (does not matter if you call it CUC or MN). If you do not want to support the ‘regime’ you should go elsewhere.
Fourthly: There is no double currency in Cuba! (I’ll explain below). Cubans pay 25 MN with a CUC and 3 CUC with 75 MN or with 2 CUC and 25 MN. Both are used simultaneously and are mixed up.
Cuba is poor and thus Cuba should be cheap. Both are untrue.
You might think that Cuba must be cheap because you’ve heard that a doctor earns 40 CUC a month.
Well, it’s not… (And a doctor does not live on 40 CUC). Cuba is expensive. Nobody can live in Havana on 40 CUC a month. If you don’t want to go hungry you need about a hundred. And if you want to buy clothes and wear shoes you need a hundred more and if you want to keep your house in a reasonable state that’s another hundred…
I believe that a Cuban needs about 200-300 CUC a month to live a decent life…
Because jobs don’t pay those salaries everybody is making money on the side. Or even worse, the salary people get is the pocket money you make on the side.
The average salary of 20 dollars is just a myth (we explain that in our book). So if somebody charges you 10 for half a day’s work, he’s not getting half a month’s salary, he’s just getting a decent pay.
They say that Cuba has a double currency… Moneda Nacional and CUC. (both are called Pesos by the way).
That’s an artificial debate. The MN is pegged to the CUC and always has the same value 25/1 or (24/1 when you are buying). So if something costs 25 pesos, it costs 1 CUC. If something costs 100 Pesos it costs 4 CUC and the other way around. (small print… not taking into considerations Cuban companies.)
Calculus for the ‘double currency’
A simple trick to convert Pesos to CUC: take off 2 zeros and multiply by 4.
CUC to Pesos: Add to zeros and divide by 4.
The idea of a double currency just makes things more complicated but in reality, it’s just the same currency, expressed in different terms. You can pay something that costs 10 CUC with 250 MN, or with 6 CUC and 100MN or 50 MN and 8 CUC. The conversion is always the same.
I think the debate is artificial because the US has a double currency too. Dollars and Dimes… there are always 10 Dimes to a Dollar so you can price stuff in Dollars and Dimes. If something costs 10 Dimes you can pay with a dollar!!! Really!!!
We explain more about the so-called double currency system in our book… Even the Cubans believe there are two currencies!
Now that you understand the Currency, get your budget under control
We do have a totally different view on Cuba than the main stream Travel guides and websites… Here’s how you handle the street hustlers…