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Cuban convertible peso
The Cuban convertible peso (ISO 4217 code: CUC) is one of two official currencies in Cuba. Informally known as the chavito, it has been in limited and unofficial use since the early 1990s, and was adopted as an official currency in November 2004. Only exchangeable within the country, its value is nominally pegged to that of the U.S. dollar (USD). Coins in circulation are 1, 5, 10, 25, 50 centavos, and 1 peso (1 centavo was introduced in 2000). Banknotes in circulation are 1, 3, 5, 10, 20, 50, and 100 pesos.
From 1993 until 2004, the Cuban economy was split between the Cuban peso, used mainly by Cuban citizens for basic supplies, and the US dollar, which was used by tourists and for 'luxury' items. (For more details, see the Cuban peso article).
However, on October 25, 2004, Cuban President Fidel Castro announced that the U.S. dollar would be withdrawn from circulation in Cuba to retaliate against further U.S. sanctions. Cubans had until November 8, 2004 (later extended to November 14, 2004), to convert their dollars free of charge into convertible pesos before new charges came into effect; after this date, it would remain legal to hold US dollars, but a 10% surcharge would be imposed when converting them into convertible pesos.
Although still not available outside Cuba, the convertible peso has a value pegged to that of the dollar when issued at local banks and exchanges (called "CADECA", short for the Spanish phrase "Casa De Cambio"). The 10% fine means that US dollars are effectively bought at a rate of 1:0.9, but sold at the full rate of 1:1 (i.e. 100 USD will be converted to 90 CUC, but if a tourist leaving the country trades in 90 CUC, they will only get the 90 USD value back). Other currencies, such as euros, Canadian dollars, pounds sterling, and Swiss francs, are worth the same number of convertible pesos as they would be worth US dollars.
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