Cuc

Cuc, in the context of currency, refers to the Cuban Convertible Peso (CUC). The CUC was one of Cuba’s two official currencies from 1994 until its gradual withdrawal in the early 2020s, operating alongside the Cuban peso (CUP). It was primarily used in transactions that involved foreign exchange, tourism, retail in areas serving visitors, and certain import activities, while CUP was more common for most domestic, everyday transactions.

Origin and purpose: The CUC was introduced after Cuba’s economic restructuring in the 1990s, following the loss of subsidies from the Soviet bloc. It was designed to attract hard currency and facilitate trade with international partners. For much of its life, the CUC was linked to the US dollar in practice, and the Central Bank of Cuba managed its issuance and exchange rates through official channels. The existence of two currencies created a dual-currency economy with different pricing and wage effects.

Circulation and usage: CUC banknotes and coins circulated in Cuba alongside CUP, with many tourist services pricing in CUC. The system allowed the state to separate foreign exchange earnings from the domestic monetary base, but it also complicated pricing, salaries, and financial planning for residents.

Unification and end: Beginning in the 2010s, Cuba pursued reforms to converge the two currencies. In 2021–2022, the government moved to eliminate the CUC as a separate currency and convert holdings to CUP at a fixed rate, effectively unifying the monetary system. The CUC gradually disappeared from circulation as part of this reform.

Impact: The CUC played a central role in Cuba’s economy for nearly three decades, shaping tourism-driven activity and foreign exchange practices. Its elimination aimed to simplify pricing, accounting, and monetary policy.