Money in Cuba is one of the most confusing aspects of visiting the island. The currency system changed in 2021, black market rates differ from official rates, US credit cards don't work, and ATMs are unreliable. This guide explains exactly how money works in Cuba in 2025 — so you don't waste time or money figuring it out on the ground.
Cuba's Currency: The Cuban Peso (CUP)
Cuba now uses a single currency: the Cuban Peso (CUP), also called the "moneda nacional." The old dual-currency system (CUP and the convertible peso CUC) was eliminated in January 2021. All prices are now in CUP.
Official exchange rate: Approximately 120 CUP = $1 USD (as of 2025). However, the informal (street) rate can be significantly higher — sometimes 250–350 CUP per dollar. The gap fluctuates and creates pricing confusion, as some businesses price at the official rate while others use the informal rate.
What Currency to Bring
- Euros are recommended for most travelers. They exchange easily at CADECA offices (official exchange bureaus) and avoid the 3% surcharge that was historically applied to USD exchange (though this has varied).
- US Dollars are widely accepted for tourist services (casas, paladares, taxis). Many tourism businesses price in USD even though the official currency is CUP.
- Canadian Dollars are accepted at CADECA and banks.
- British Pounds and other currencies can be exchanged at main bank branches in Havana.
Critical rule: Bring cash. Cuba is a cash economy. Bring more than you think you'll need — running out of cash in Cuba is a serious problem.
Credit Cards and ATMs
US-Issued Cards Do Not Work
Credit and debit cards issued by US banks do not work in Cuba. Period. This includes Visa, Mastercard, and American Express cards issued by American institutions. The US embargo prevents financial transactions.
Non-US Cards
Visa and Mastercard issued by non-US banks (European, Canadian, etc.) may work at some ATMs and hotels. However, success is inconsistent — don't rely on cards as your primary payment method.
ATMs
ATMs exist in Havana and major cities but face chronic issues:
- Frequently out of cash
- Low withdrawal limits (typically 5,000–10,000 CUP per transaction)
- Long queues
- Some machines reject foreign cards
Treat ATMs as a last resort, not a primary source of funds.
Where to Exchange Money
- CADECA offices: Government exchange bureaus. Found in airports, major cities, and hotels. Use the official rate. Bring your passport.
- Banks: Banco Metropolitano and Banco de Crédito y Comercio exchange foreign currency. Lines can be very long.
- Hotels: Many hotels exchange currency at the front desk. Convenient but sometimes at a slightly worse rate.
- Private exchange: Some Cubans will offer to exchange at informal rates. This happens widely but carries risk — counterfeit bills, short-counting, and technically it's illegal. If you choose this route, count carefully and only do small amounts.
How Much Does Cuba Cost? Daily Budgets
Budget Traveler: $35–$55/day
- Casa particular: $20–$30/night
- Peso street food for lunch: $1–$3
- Simple paladar dinner: $5–$8
- Local transport: $1–$3/day
- Water and snacks: $2–$3/day
Mid-Range Traveler: $60–$100/day
- Nice casa particular: $30–$50/night
- Paladar lunch: $6–$10
- Good paladar dinner with drinks: $12–$20
- Taxi rides and activities: $10–$20/day
Comfort Traveler: $120–$200+/day
- Boutique hotel or luxury casa: $80–$150/night
- Top paladares for meals: $20–$35 per meal
- Private taxis, guided tours, nightlife: $30–$50/day
Tipping in Cuba
Tipping is expected and important in Cuba — service workers earn low state salaries and tips make a real difference:
- Restaurants: 10% if no service charge is included (check the bill).
- Casa staff: $1–$3/day for cleaning staff.
- Musicians: $1–$2 per performance at restaurants.
- Tour guides: $5–$10 per day.
- Taxi drivers: Round up or add 10%.
Money Tips That Save You Headaches
- Bring crisp, undamaged bills. Torn or heavily worn notes may be refused at CADECA.
- Small denominations help. Bring $1, $5, $10, and $20 bills. Large bills ($100) can be difficult to break.
- Keep a stash of small CUP notes for street food, bicitaxis, and tips.
- Ask prices before you buy. Tourist pricing exists — always clarify the price upfront, especially for taxis and markets.
- Carry a secure money belt. You'll be walking around with your entire trip budget in cash. Don't keep it all in one place.
- Track your spending. Without card statements, it's easy to lose track. A simple note on your phone works.
Cuba's money situation requires preparation but isn't as complicated as it sounds once you're there. Bring cash (preferably euros or clean USD), exchange at official outlets, budget generously, and tip well. Your hosts and service providers will take care of you.