There are two kinds of legal tender in Cuba: domestic pesos (moneda nacional: MN) and, convertible pesos (moneda libremente convertible MLC). MLC is known as CUC and is equivalent to 1.08 USD.

Although most visitors will never see any MN while in Cuba, is noteworthy to mention that MN can be freely exchanged for CUC at any CADECA (currency exchange booth).Cubans and foreigners alike may affect the exchange and the current rate is 24 MN per 1 CUC.

Cuba´s tourism sector is operating in convertible pesos starting on November 8th 2004 thus replacing the US dollar to pay for sales and services. Cuba´s Central Bank (www.bc.gov.cu) informed that payments in hotels, restaurants, bars, cafeterias, taxis, shops, car rental companies and other services will be made in convertible pesos.

USD will be subject to 18% commission charge.

All other currencies will be subject to 8% commission charge.

For non-US visitors , this simply means upon arriving in Cuba you will exchange your Canadian dollars, Euros, Swiss Francs, or British pounds at the airport or your hotel for CUC at or near established international exchange rates. When departing, you will be able to convert them back to the currency of your choice, but remember, there's always fees when exchanging currency.

US visitors will have two choices. Before arrival, you can purchase Canadian dollars, Euros, Swiss Francs or British pounds and exchange them as mentioned above. You can purchase CUC with USD, but an additional 10% fee will be assessed as well as the exchange rate.

At Jose Marti Airport in Havana, exchange desks are set up near the luggage carousel enabling you to exchange your money while waiting for your luggage (other airports should be similar). Once in the public area of the airport, you will have to go to the exchange counter on the main floor or the bank on the 2nd floor for any currency conversion. Throughout Cuba, any bank and most CADECA exchange counters will perform this service.

When departing Cuba, it may be advisable to exchange most of your money prior to arriving at the airport as occasionally, your currency of choice may not be available. Remember to keep enough money for minor purchases and your departure tax of $25 per person.

Don't think of both currencies as pesos. Consider and call the convertible peso a "dollar" and the Cuban peso a "peso". Cubans call the tourist dollar a "chavito" and the Cuban peso "moneda nacional" or MN. In reality, very few tourists to Cuba will even encounter Cuban pesos. If you travel off the beaten track or are familiar with Cuba, you may indeed run into pesos. Admittedly, the use of the "$" sign for both pesos and dollars can occasionally be confusing. I've paid one dollar for an orange juice in Old Havana and one peso (1 nickel) for orange juice in the country. Both would be marked as $1 (CUC should have 2 vertical lines, while the peso only has 1). However, if in doubt, it's advisable to ask whether the price is dollars or pesos.

Currencies from other countries may be exchanged at airports and banks for MLC. Any remaining MLC after one’s trip may also be reconverted at the airport before leaving (a wise maneuver as it has no value outside of Cuba). Cash withdrawals are also possible from Visa and Mastercards issued by non-U.S. banks.

More info at Cuba´s Central Bank www.bc.gov.cu