If you’re planning a trip to Havana or just trying to wrap your head around how the island works, you’ve probably heard that money there is a "mess." Honestly? That’s an understatement. For decades, Cuba had a dual-currency system that confused the heck out of everyone. Then, they "fixed" it by getting rid of one currency, but somehow ended up with three different exchange rates and a new digital currency that isn't exactly a currency.
Basically, it's a jigsaw puzzle where the pieces keep changing shape.
What is the Cuban currency right now?
The short answer: It’s the Cuban Peso (CUP).
If you look at a banknote, it’ll say Pesos Cubanos. Locals call it moneda nacional. In 2021, the government officially killed off the CUC (the "convertible peso" that tourists used to use), so on paper, the CUP is the only legal tender. But here is the thing: nobody actually wants to hold onto it for very long. Because inflation has been a beast lately, the value of those paper bills in your pocket can feel like it's melting.
The 2026 Reality: Three Official Rates?
As of January 2026, the Central Bank of Cuba (BCC) has added a new layer of complexity. Instead of one single exchange rate, we now have a segmented system.
📖 Related: The Gwen Luxury Hotel Chicago: What Most People Get Wrong About This Art Deco Icon
- The Fossil Rate: $1 USD = 24 CUP. This is mostly for state-owned enterprises and accounting voodoo. You will never see this rate in real life.
- The "Cadeca" Rate: $1 USD = 120 CUP. This is what you get at the official government exchange booths at the airport or hotels.
- The New Floating Rate: Launched very recently, this rate is meant to fluctuate based on supply and demand. In early January 2026, it was sitting around 466 CUP to $1 USD.
The government introduced this third rate to try and kill the black market. Did it work? Sorta. But not really.
The "Invisible" Currency: What is MLC?
You can't talk about what is the cuban currency without mentioning MLC. It stands for Moneda Libremente Convertible.
MLC isn't a physical bill you can hold. It’s a digital value stored on a card. You buy these cards (or load a Cuban bank account) using "hard" foreign currency like Euros or Canadian Dollars. Why does this matter? Because the best government-run stores—the ones that actually have soap, decent beef, or a new fridge—only take MLC. They won't take your paper pesos.
It’s a weird, tiered society. If you have MLC, you can buy the good stuff. If you only have CUP, you’re stuck in the long lines for the basics.
👉 See also: What Time in South Korea: Why the Peninsula Stays Nine Hours Ahead
The Street Rate vs. The Official Rate
This is where most travelers get tripped up. If you go to a government exchange house (CADECA) and swap $100 USD, you might get 12,000 pesos (at the 120 rate).
But if you walk down the street in Old Havana, a taxi driver or a "casa particular" owner might offer you way more. We’re talking 350, 400, or even more pesos for that same dollar. This informal market is technically illegal, but it's how the entire island breathes.
Wait, should I exchange money on the street?
It's risky. You could get scammed with fake bills or short-changed. However, most savvy travelers talk to their hosts at their casa particular (private homestay). These hosts are usually experts at the current "real" value and can help you exchange safely. If you pay for everything at the official 120 rate, Cuba will feel like the most expensive country on Earth. If you use the informal rate, a mojito suddenly costs $2 instead of $8.
Practical Advice for Your Wallet
Since things change fast, here’s the ground truth for right now.
✨ Don't miss: Where to Stay in Seoul: What Most People Get Wrong
- Bring Cash. Lots of it. US-based debit and credit cards still don't work in Cuba because of the embargo. Even if you have a European or Canadian card, the power goes out, the machines break, or the bank simply says "no." Cash is king.
- Don't Change Everything at Once. Change $50 or $100 at a time. You cannot change Cuban Pesos back into USD or Euros when you leave. Once you have those pesos, they are yours forever. They make cool souvenirs, but they won't pay your rent back home.
- Small Bills are Life. Bring $1, $5, and $10 bills. Many private restaurants and shops will happily take your USD directly, but they might give you change in CUP.
- The Euro is Better. While USD is accepted, the government often sticks an extra 8% fee on USD exchanges at the bank. Euros and Canadian Dollars usually only have a 2% fee.
The "El Toque" Factor
If you want to know what the real value of the Cuban currency is today, don't check a currency converter app. They are almost always wrong. Instead, look up El Toque. It’s an independent news site that tracks the informal exchange rate in real-time by scanning social media ads. It’s the unofficial "Wall Street" of the Cuban street.
Actionable Steps for Today
If you are headed to Cuba in the next few weeks, do these three things:
- Check the El Toque rate 24 hours before you fly to see the current gap between the official and street rates.
- Pack a mix of currencies. Take some Euros for the official stuff and USD for tipping and private businesses.
- Download a calculator app that works offline. When a menu says 1,500 pesos, you'll want to quickly know if that’s a bargain or a rip-off based on the rate you got.
Understanding the money is half the battle of enjoying the island. It’s confusing, sure, but once you get the hang of the CUP/MLC/USD dance, you'll be navigating the streets like a local.