History
From 1993 until 2004, the Cuban currency was split between the Cuban peso (the currency Cuban citizens are paid in and used for staples and non-luxury items) and the U.S. dollar in combination with the convertible peso, which was used for tourism and for luxury items. The Cuban peso(CUP) can be exchanged to the convertible peso (CUC) at the exchange offices (CADECA), at a fixed rate of 24 CUP to 1 CUC (sell) and 25 CUP to 1 CUC (buy).; however, for state household book-keeping purposes, both pesos are valued at a 1:1 rate.
On 8 November 2004, the Cuban government withdrew the U.S. dollar from circulation citing the need to retaliate against further U.S. sanctions. After a grace period ending on November 14, 2004, a 10% surcharge began to be imposed when converting U.S. dollars into convertible pesos. The change was announced some weeks beforehand and was extended by the aforementioned grace period (it has been claimed this was because the amounts of US dollars being exchanged were more than anticipated). This measure helped the Cuban government collect hard currency.
Read more about this topic: Cuban Convertible Peso
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—William Shakespeare (1564–1616)
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“To history therefore I must refer for answer, in which it would be an unhappy passage indeed, which should shew by what fatal indulgence of subordinate views and passions, a contest for an atom had defeated well founded prospects of giving liberty to half the globe.”
—Thomas Jefferson (1743–1826)